@puptent I think it is because it is a transaction, money changes hands, and the government has the opportunity to tax you. Think about it, sales tax (sales transaction), income tax (payroll transaction), interest (dividend transaction), 401k (distribution transaction), inheritance (probate transaction). If money is changing hands, the government wants a cut of the action, we call it taxes.
Note: Those rich enough to have unrealized capital gains, that is to say, there has not yet been a sales transaction from which they have profited, can borrow against their unrealized gain at ridiculously low interest rates (like 1%), and avoid paying any tax because there has been no ‘transaction’ in the classic sense of money changing hands, it has only been ‘cleaned’ by the bank.
At least those are my thoughts on the issue, someone more informed on matters of high-finance may choose to enlighten us further and/or refute my claims.
PayPal Friends & Family listings. Why is this becoming so common?
I think most sellers now realize they are not going to have a taxable profit.
The F&F listings at market price don't seem to sell.
It seems like buyers demand around a 20% discount to take on the added risk of F&F.
I'm really just curious to hear what buyers & sellers think of this practice.
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- 49 posts total
- 49 posts total