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Haceru

Ripple Labs and taxes

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Hello everyone,

I apologize in advance if the below will upset anybody, but with the risk of being "nailed" for it I have to ask a few questions .... maybe someone will help shed some light on the near term future of Ripple

Here we go:

- how will Ripple be treated by IRS in regards to taxes due considering the price of XRP? How can they "explain" to the IRS they do not own at least 60 blns XRP worth almost 120 bln USD ... which would be a huge capital gain / profit thus a huge tax liability (anything between 10 to 20 bln USD) ?
- same to the state of California and / or Delaware, for their state taxes.
- how will Ripple explain to the banking world / investors December`s price evolution and how can they reassure them XRP is a "stable" asset, not for speculation, "immune" to price fluctuations?
- let`s suppose the fiscal year ended in October, thus the tax liabilities would be calculated at $0.20 so not big of a problem ... yet ... but how about the future price? If XRP stays at 1-2 USD, Ripple will still have to explain how they don`t own the 50 bln XRP in escrow at the end of 2018 so they will have to come up either with a great explanation that would "fly" with the IRS or with a solution to get at least 10-20 bln USD cash to pay their taxes. Any ideas how that might happen? I think it would rewrite the books on economics about profitability :) 

Thank you in advance for any decent comment / answer

Edited by T8493
fixed title to something less dramatic

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12 minutes ago, Haceru said:

Hello everyone,

I apologize in advance if the below will upset anybody, but with the risk of being "nailed" for it I have to ask a few questions .... maybe someone will help shed some light on the near term future of Ripple

Here we go:

- how will Ripple be treated by IRS in regards to taxes due considering the price of XRP? How can they "explain" to the IRS they do not own at least 60 blns XRP worth almost 120 bln USD ... which would be a huge capital gain / profit thus a huge tax liability (anything between 10 to 20 bln USD) ?
- same to the state of California and / or Delaware, for their state taxes.
- how will Ripple explain to the banking world / investors December`s price evolution and how can they reassure them XRP is a "stable" asset, not for speculation, "immune" to price fluctuations?
- let`s suppose the fiscal year ended in October, thus the tax liabilities would be calculated at $0.20 so not big of a problem ... yet ... but how about the future price? If XRP stays at 1-2 USD, Ripple will still have to explain how they don`t own the 50 bln XRP in escrow at the end of 2018 so they will have to come up either with a great explanation that would "fly" with the IRS or with a solution to get at least 10-20 bln USD cash to pay their taxes. Any ideas how that might happen? I think it would rewrite the books on economics about profitability :) 

Thank you in advance for any decent comment / answer

Since it seems you are genuine, I will amswer.one question. But will some research, the amswers are there.

 

1. IRS question:

 

It's an asset, if it appreciates, and there isn't a sale, there are no taxes. Taxes are from: sale minus cost basis. They are only taxed on profits, from what was sold, thus no longer own. Thus, even if it goes up a million, no taxes until sold.

They put it in escrow, thus, they still own it. They didn't gift it. Ripple still maintains ownership. They just promised to give up some control, for some period of time. 

 

Now buy more XRP.

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There is only 38.7B coins on the market so that definitely isn’t 60B. And what do you mean “they do not own?” Are you talking about the escrow? Those are not sold yet so no taxes will be paid on that. Also, lots of the currently circulating coins were out in the previous years soooo no taxes owed on those as they were sold years ago (having already paid those taxes). Obviously they would need to pay taxes on coins sold to companies this year and coins onto the market (sold this year) but I’m assuming they all went out when it was well below 1$. Pretty sure they will have plenty of $$$$$$$$ to pay for their taxes by April and I’m sure they get tax breaks being a large company somehow or another. 

Regardless if they are genius enough to event this coin to begin their market to eventually fund banks endeavors for cross border payments. . . They can handle their taxes. 

Just sayin. I am not a tax pro but I think they will be just fine. 

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10 minutes ago, Wobile said:

Since it seems you are genuine, I will amswer.one question. But will some research, the amswers are there.

 

1. IRS question:

 

It's an asset, if it appreciates, and there isn't a sale, there are no taxes. Taxes are from: sale minus cost basis. They are only taxed on profits, from what was sold, thus no longer own. Thus, even if it goes up a million, no taxes until sold.

They put it in escrow, thus, they still own it. They didn't gift it. Ripple still maintains ownership. They just promised to give up some control, for some period of time. 

 

Now buy more XRP.

Thank you for this, it explains a lot

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18 minutes ago, Wobile said:

Since it seems you are genuine, I will amswer.one question. But will some research, the amswers are there.

 

1. IRS question:

 

It's an asset, if it appreciates, and there isn't a sale, there are no taxes. Taxes are from: sale minus cost basis. They are only taxed on profits, from what was sold, thus no longer own. Thus, even if it goes up a million, no taxes until sold.

They put it in escrow, thus, they still own it. They didn't gift it. Ripple still maintains ownership. They just promised to give up some control, for some period of time. 

 

Now buy more XRP.

Thats right. I was about to write almost same answer but in bit different language starting with " Do u know what u r talking about " lol

Edited by Rchopra

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1 hour ago, Haceru said:

Hello everyone,

I apologize in advance if the below will upset anybody, but with the risk of being "nailed" for it I have to ask a few questions .... maybe someone will help shed some light on the near term future of Ripple

Here we go:

- how will Ripple be treated by IRS in regards to taxes due considering the price of XRP? How can they "explain" to the IRS they do not own at least 60 blns XRP worth almost 120 bln USD ... which would be a huge capital gain / profit thus a huge tax liability (anything between 10 to 20 bln USD) ?
- same to the state of California and / or Delaware, for their state taxes.
- how will Ripple explain to the banking world / investors December`s price evolution and how can they reassure them XRP is a "stable" asset, not for speculation, "immune" to price fluctuations?
- let`s suppose the fiscal year ended in October, thus the tax liabilities would be calculated at $0.20 so not big of a problem ... yet ... but how about the future price? If XRP stays at 1-2 USD, Ripple will still have to explain how they don`t own the 50 bln XRP in escrow at the end of 2018 so they will have to come up either with a great explanation that would "fly" with the IRS or with a solution to get at least 10-20 bln USD cash to pay their taxes. Any ideas how that might happen? I think it would rewrite the books on economics about profitability :) 

Thank you in advance for any decent comment / answer

Judging from your post (which comprises ill-conceived notions of pure baloney) I'd say, not only are you out of your depth, you we're out of your depth the moment you set foot out of the house this morning.

Edited by battered_lifer

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1 hour ago, Haceru said:



- how will Ripple be treated by IRS in regards to taxes due considering the price of XRP? How can they "explain" to the IRS they do not own at least 60 blns XRP worth almost 120 bln USD ... which would be a huge capital gain / profit thus a huge tax liability (anything between 10 to 20 bln USD) ?
- same to the state of California and / or Delaware, for their state taxes.
- how will Ripple explain to the banking world / investors December`s price evolution and how can they reassure them XRP is a "stable" asset, not for speculation, "immune" to price fluctuations?
- let`s suppose the fiscal year ended in October, thus the tax liabilities would be calculated at $0.20 so not big of a problem ... yet ... but how about the future price? If XRP stays at 1-2 USD, Ripple will still have to explain how they don`t own the 50 bln XRP in escrow at the end of 2018 so they will have to come up either with a great explanation that would "fly" with the IRS or with a solution to get at least 10-20 bln USD cash to pay their taxes. Any ideas how that might happen? I think it would rewrite the books on economics about profitability :) 

Thank you in advance for any decent comment / answer

- If Ripple has to pay taxes over the 60blns XRP, you just move that shitload of XRP to a country that doesnt recognise crypto valuta for taxes, like you know all multinationals do, use cross country tax legislation to pay zero taxes. 
 

- Ripple stated many times before liquidity needs to rise, price needs to rise for full utility of XRP. 

- Point 1, 2 and 4 are same ****, if taxes are actually that high corps. will find a way to pay eventually zero taxes, or a minimum of taxes. 

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