It's dead simple.
You made a $705 capital gain in 2020.
You just enter "705" in the "long term capital gains" column in 2020 return.
The waffle/etc. is unrelated to anything, is irrelevant, and has no connection to your tax return in any year. The "Investopedia" article is nonsensical/irrelevant.
Fortunately it's that easy!
Escrow services exist to reduce counterparty risk. By requiring each party to post their assets in a trade first, the escrow service can guarantee that the trade will either execute fully, or not at all.
To make this guarantee, the escrow service needs to be sure you really have the assets you are bringing to a trade. This is why a personal check is no good: ...
2016: You did your friend a favour by buying him a waffle maker. Instead of paying you what you paid, he paid you the respective amount in BTC.
Or just: you loaned him $35.
In other words, you bought BTC from him for $35. You didn't have this amount as income, because that's what you paid for the device.
2020: You sold the BTC which you once ...
Sales proceeds: $35.
Cost of goods sold: $35.
Business expenses: none reported.
Net income (profit or loss): 0
Reportable income: $0.
No change to tax amount. No need to refile 2016 taxes.
Fill out capital gains form, schedule D.
Acquire date: 2016.
Cost basis: $35.
Sell date: 2020.
Held asset more than 1 year? YES. So it goes ...
It's not labeled "wire transfer", but most online banking services have an area called something like "Transfer money". This is usually used to transfer between your own accounts (e.g. moving money from savings to checking), but there should also be a way for you to add external accounts to transfer to/from, for instance to transfer money ...
In the US, banks are identified by "routing numbers". To electronically send money to someone else, you need their bank routing number plus their individual account number.
Zelle just hides that by having each person enter their bank routing and account numbers once, and then associating them with an email address or cell phone number.
If your ...
You can send money by a wire transfer in the US. But you have to pay a fee. Last time I sent a wire transfer I think the bank charged me $30. Every now and then when my boss has difficulty with the ACH transactions he pays me with a wire transfer, and I have to pay about $15 to receive it. If you're sending $10,000, I suppose a $30 fee is trivial. If you're ...
While wire transfers are prone to fraud, so are others methods of transferring money. Wire transfers are expensive, there by limiting their use to the transfer of large amounts of money (typically).
The bottom line is that there is no more reliable way to transfer money quickly than wire. Many occur each day with no issues. Like anything else, those with ...
the receiver is a rich person who earns more than 100K. So does he have to pay tax even if my gift value is less than 14K just because he is rich or he earns more?
In the United States, gift taxes are paid by the giver, not the receiver, no matter how rich the recipient.
(That's wholly separate from any CG taxes the recipient must pay when they sell the ...
I can sell my stock and give money or gift my stock worth the same
amount. If I sell my stock I have to pay tax, means I have to sell
more stocks. Instead I want to gift my stock and it can be sold for
cash on the same day by the receiver.
If you gift the stock they don't pay any gift tax.
But when they sell the stock they may have to any tax on the gains.
Wire Transfers are the convenient way to make a large, non-reversible, fast, no-problems payment - once they get money through a wire transfer, they can be sure it is real and irreversible.
They don't care about the associated (ridiculous) fees, as the customer has to pay them.
P.S. I'd love to be able to put a down payment on a Credit Card! - I would get a ...
To literally answer the questions,
Is it possible to send money to my friend in the US using a wire transfer?
Currently on the order of 10,000 to 20,000 wire transfers are sent from Europe to the US every weekday.
is it possible to send each other money by only using the US bank account number
No, to send a wire transfer you need about ...
If you want the simplest answer, declare $740 in realized capital gains and pay the taxes on it. This is technically not accurate, as there was the whole waffle maker event involved in your acquiring the bitcoin in the first place. In theory you could fill out the paperwork to properly deduct it and pay less in taxes. But, as you noticed, it's a bit more ...
The advance child tax credit payments that will be paid out in 6 monthly payments from July-December 2021 will be based on the information on your 2020 tax return. However, the payments are really a prepayment of your 2021 child tax credit. And unlike the stimulus payments of the last year, if you end up being paid more than your next tax return makes you ...
She could try getting an in-person appointment at her local Taxpayer Assistance Center (TAC).
Although the IRS does not mention it, one article states that you can write a letter to the director of your local TAC. You could mail a printout of the "Where's My Refund" screen along with a copy of her 2019 return and a cover letter explaining the ...
I don't understand how you can think the linked Q "indicates that ordering doesn't matter" when I spent 5 bullets laying out in detail how the order does matter. As you say, CTC was formerly nonrefundable and only ACTC (for a smaller amount) refundable, so that is a change in the specifics though not the concept.
Also, modified-CTC is not the only ...
Sorry for your loss.
Inheritance taxes are usually called estate tax and is paid by the executor of the will (presumably you) out of the assets of the estate before the assets are divided among the beneficiaries. Given the small value of the estate (far less than the $11 million+ Federal estate tax exemption), there is no Federal estate tax that needs to be ...
I was in a similar situation, and my HR department has told me that the change has to be related to the QLE. Specifically they told me I could add my new dependent to the plan I was on (retroactive to the date of birth), but I couldn't can't change plans. I don't know how much discretion a company's HR department has in this kind of situation. Also, it was a ...
Will I have to pay the taxes on the gain immediately like with ISOs or only when I dispose the shares?
Only when you sell the shares (and only if there's a gain)
Also note that you wouldn't pay taxes "immediately", but when you file (or sooner if you need to make quarterly estimated payments), and that gain may end up being offset by compatible ...
Being an authorized user on someone else's card imputes their credit score (as calculated just from that card), and it stays with you, just like any other card.
So, go with Option #3 while you're waiting for your ITIN.
Remember, though, that the wise person lives below their means, and pays the whole CC bill every period. (I pay it off at the end of every ...
I'm not sure how much value this will offer to future visitors, but to answer the question:
Is this some sort of a special service I need to ask the bank for?
You can place wire transfers through Bank of America online. Once you are logged into your account, hover over "Transfer | Zelle" and then click "To / from other banks (includes wires)&...
If you have enough money at an institution, additional accounts are often free. As may folks noted, set up checking accounts that you use for deposit or electronic payment only. Once a week or so, log in and move any money from that account to your main or protected account. This is the process that is used by many large companies.
PS: knowing what is ...
A great deal depends upon the employment arrangement that will be (or was) in place with this "guy in Australia".
If there is some way in which your arrangement is deemed to fall within the scope of the Fair Work Act 2009 (the major legislation governing employment arrangements in Australia) then you cannot pay primarily in company stock.
If your ...
I don't think such a list is freely available from official sources.
However, the opposite of what you are looking for — a list of US stocks that have weekly options — is available from the Options Clearing Corporation (OCC): Weekly and Quarterly Options (CSV download).
To get the list of US stocks that have no weekly options, you could use the OCC's list of ...
The Marketwatch article is correct:
When a put or call option expires, you treat the premium payment as a short-term capital gain realized on the expiration date. This is true even if the duration of the option exceeds 12 months.
See page 58 of IRS publication 550 for how options are handled.
If your child was born in 2020, then they should have been included in your tax forms files in May 2021. The plus-up payment rules would apply:
We are sending additional or plus-up payments to people who:
Already received a third Economic Impact Payment based on a 2019 tax return or information received from SSA, RRB or VA
May be eligible ...