I thought it was not earned until cashed out .. like a job .. you are paid until get the cash.. not sure which country you are in.
I thought it was not earned until cashed out .. like a job .. you are paid until get the cash.. not sure which country you are in.
In most cases, you are correct. In fact, that tax (capital gains) will apply when we would go to cash some out, falling under the short or long term rules if it was over/under a year in holding.
The payments we are receiving is viewed by the IRS as a form of income, subject to income taxes. The sheet they put it on was for other income. I asked about if the tax I paid now was deductible from the capital gains tax down the road and was told yes.
Okay so that is like 20% of what you gain like property
I can't say what your tax liability under other income would be as I believe it would be determined based on what tax bracket you fall under.
For short term gains (under 1 year) it is 50% and for long term (over 1 year) it is 20%. And then in this case according to the tax people, since I paid on what I receive here already as income, that amount payed is deductible from the capital gains in the future.
LOL and so the saga continues... crazy world
thanks for the info.. I know it is not taxing advise .. same here entertainment purposes only. We are not tax advisors.