Re: more thoughts re/ taxes - $10k a year in gifts

[Richard Moore]

Hi Michael,

The gift angle could be a help. I guess we'll need a multi-faceted approach. 

If we view the credit as a commodity, and credit purchases as barters, then the buyer won't be subject to any tax on the transaction because what he's getting is not worth more than the credits he traded. The seller pays their income tax on their net profits at the end of the year. We can set up all of our enterprises as charitable non-profits. What they don't pay in wages, expenses, and re-investment in the enterprise, they can give away to the community at the end of the year.

Think that would work?

cheers,

richard

________

Michael Richardson wrote:

Technically any individual, even by IRS rules, can receive up to $10k a year in gifts, tax free. In truth the IRS has no right to tax income, period. They sure don't have the right to tax a currency when they had nothing to do with creating. But more to the point of answering your question Even if they don't charge the original recipient of the 100 credits any taxes, they will require every subsequent recipient to report those credits at their FRN value. They will also claim the credits clearly have value because they can be exchanged for goods and services that have value. The value of the credits will be determined by how many credits it takes to get one Federal Reserve Note's worth of goods or services.

 

I don't know any tax experts that have taken on this issue. I do know that back in 1982 I was informed by the IRS that I was required to report to them how many trade credits each of my members received. Each member was required to treat trade credits the same as FRNs for determining and reporting their income. But of course we could not use them for paying income taxes.

Michael

[how...@earthandstraw.com]

Yes, it sounds like the Green way to me.

 

Howard Switzer, Architect
668 Hurricane Creek Road
Linden, TN 37096
931-589-6513
www.earthandstraw.com