Get the Note - a digital token by Republic, a US company backed by Binance & Neo

[trimpo]

How does my investment impact my taxes?

Did you invest in a Republic offering in the last year or before? Curious as to how your investment may impact your taxes? While Republic cannot give you tax advice, we will provide you with some general information and resources. We hope you find these guidelines helpful.

Tax liability is largely determined by what type of entity you invested in:

The first step is to determine whether you have invested in a C corporation or an LLC. You can find this information on each company's Form C, which is attached to the deal page offering.

[VeloCHARAPtor]

What if I invested in a C-corporation?

In general, U.S. investors investing in C-corporations on Republic will only need to report income when they realize a gain or loss for tax purposes and no K-1 is due to you. In other words,

When obtaining liquidity such as through selling a position,
When earning interest, or
When receiving and then selling a digital asset (token).
In these cases, the company you invested in (or its 3rd party transfer agent) will provide you with the necessary documents.

[VincentoDoraimon]

What if I invested in an LLC?

[DonyTramp]

What if the company I invested in went bankrupt?

[republic.sup]

What if the company I invested in went bankrupt?

The company or its trustee is responsible for providing you tax documents to reflect the loss. Republic may assist these companies in distributing tax documents, but cannot create them or secure them until there is court approval of the winding up of the business. 

Thanks for the feedback! You are right and we always talk about it.

[republic.sup]

Calling all New York startups!

Applications are now open for the NYPA Innovation Challenge, a program between NYU Tandon’s Urban Future Lab and New York Power Authority to help startups develop pilot programs that can demonstrate new technology and business models in New York State. Applications are open now through June 15.

Learn more and apply: http://short.pub/15490788

[Fenomenon]

What if I sold the security I acquired on Republic in a private transaction and realized a gain?

Once you sell a capital asset, such as Crowd SAFE, and realize a gain, the capital gain (i.e., [sales price] - [basis]) is taxable.

[Hariton Vladimirovich]

What if I sold the security I acquired on Republic in a private transaction and realized a loss?

[Inkassator]

I am a Canadian investor, can I participate?

[Jenny Briane White]

I am a Canadian investor, can I participate?

Each company on Republic decides which jurisdictions to accept investors from and is responsible for ensuring they are compliant in that jurisdiction.

When an offering is open to international investors, Canadian investors are welcome to participate in offerings on Republic.

[Jon Winston]

I am a Canadian investor, can I participate?

Canadian investors may be subject to additional holding requirements that exceed those that apply to US investors. https://republic.co/learn/investors/selling

Canadian investors should consult with their local regulators and each company's Form C before investing.

[Junior Hollow]

How are my investments taxed?

[Larion Drake]

How are my investments taxed?

The following information is based on our understanding of how some investors will be taxed on commonly used investment instruments.  Each company hosted on Republic prepares its own security instrument for fundraising.  We do not provide any guidance as to how such instruments may be taxed generally or how a specific investor purchasing these instruments would be taxed, and encourage you to discuss any tax questions with your tax, legal, accounting, and other financial advisers.  The great majority of investments in seed-stage and early-stage companies result in complete losses for the investor, so tax losses may be expected on your investment. 

[Miriam WolfStavish]

How are my investments taxed?

Crowd SAFE investments: Crowd SAFE investments grant the holder a contingent right to receive stock or cash at a later period of time. Generally, these investments do not generate a taxable event until some type of liquidity event (e.g. when the issuer engages in an initial public offering or is acquired).  Crowd SAFE instruments typically do not afford an investor the right to receive K-1s or similar tax documents. 

[MQAffi]

How are my investments taxed?

Crowd SAFE investments: Crowd SAFE investments grant the holder a contingent right to receive stock or cash at a later period of time. Generally, these investments do not generate a taxable event until some type of liquidity event (e.g. when the issuer engages in an initial public offering or is acquired).  Crowd SAFE instruments typically do not afford an investor the right to receive K-1s or similar tax documents. 

Token DPA investments: The Token DPA is a debt-like instrument which affords the investor the right to a future cash payment or tokens. If the investor receives cash with interest, tax will be due on the interest gained. If the investor receives tokens, tax guidance is unclear as to whether there is a taxable event. You may have to pay tax on the value gained then or pay tax when you sell or trade the tokens.  Token DPA instruments typically do not afford an investor the right to receive K-1s or similar tax documents.

Other instrument types such as the Crowd SDA and Crowd TPA will be taxed based on facts and circumstances unique to each instrument. You should consult with the issuing company and your tax advisor.

[Neverlessyou]

How do I get my post marked as "Helpful" ?

[trimpo]

How does a startup graduate to the home page?

[VeloCHARAPtor]

How does a startup graduate to the home page?

Every company raising funds on Republic is viewable on our All Companies  page. But how does a company make it to the home page and to the top navigation section under the “For investors” label? We use objective criteria to graduate a company:

A company graduates to the home page when:

(1) The company raises more than $25,000; and

(2) The company has not requested to be left off of the home page; such request may be withdrawn at any time requirement (1) is met.

Appearing on the home page is not an endorsement of a company's offering. Companies that appear on the home page are offered the opportunity to (i) have their campaign's launch announced via an email to Republic's user base (ii) be featured in the Superheroes blog.

Republic reserves the right to change this policy without notice, this policy was last updated on January 24, 2019. Version 1.1.

[VincentoDoraimon]

What are the conditions allowing the startup to do a rolling close?

[DonyTramp]

What is a rolling close and how does it affect my investment?