Need Tax Advice on Shares

[Mr.Ease]

Here is the simple scoop...

I'm supposed to receive shares of a company for working with them during there ICO... *Actual Shares, as they decided to not do a token route at the moment and instead wanted to issue actual legal stock/shares of the company.


Does anyone know how this would work tax-wise as I will have to claim them. I had to do the whole w-9 deal, so I have to.

Will I have to pay taxes for Just receiving the shares - taxed at ordinary income?
Or will I only have to pay taxes when I actually sell the shares?

My concern is this... If 'Technically', based on ICO price, I recieve like $50k worth of shares, But I can not sell these shares anytime in the next year(s)... Am I still liable to pay the taxes on the $50k ICO price at the time I recieve them?

What if the exchange rate makes my $50k worth $0 and I have no option to sell?

I'm completely confused - and can't find a good answer... I'm tempted to just bail on it, write it off. I don't want to get screwed owing taxes on something potentially worthless - especially with the state of the markets.


Any help would be greatly appreciated

[tactac]

I think it depends on which country you live in. For example, in Japan it is taxed if you receive reward that are traded on the market and have price for work. In other words, if you receive a token as reward that is not listed on the exchange just after ICO, you will not be taxed because there is no value at that time. But if you receive a stock with a market price you will be taxed.

[Mr.Ease]

I think it depends on which country you live in. For example, in Japan it is taxed if you receive reward that are traded on the market and have price for work. In other words, if you receive a token as reward that is not listed on the exchange just after ICO, you will not be taxed because there is no value at that time. But if you receive a stock with a market price you will be taxed.

I appreciate the response.

I have done some more digging since I posted this, and it basically boils down to what you said.

Tax wise - it depends if the shares are publicly traded as of the time I recieve them. If they are, then yes I would pay taxes as ordinary income, and then when I go to sell - I pay capital gains. So pretty much double tax.

If the shares are private, then I only pay taxes when I say as ordinary income based on the seed price (ICO).

I've been told by a few people that I am overthinking it.
But honestly, I'm not knowledgable in taxes - and I don't want the headache - or a damn bill for nothing.

[tactac]

So pretty much double tax.

I think it could not be a double tax. First, if you receive $10 worth as reward, you will be taxed for $10.
Next, if you sell it for $15, you will be taxed for $5 ($15-$10=$5).
I am sorry if I misunderstood your words.