Bots Inc (BTZI)

[Senior Chief]

longhaul4: The VCIG stock distribution will be taxed by the Federal Government and possibly also by your state depending upon what state you live in. You will have to pay the "Dividend" tax on the value of the VCIG shares that you receive.....see below along with a link to the information. If you get 10,000 shares of VCIG stock and if the pps when issued is $0.01 pps and if your AGI is over $200,000.00 then the Federal Tax that you would have to pay on your FY 2014 income tax filing would be $23.80. ( 10,000 shares times $0.01 pps equals $100.00....$100.00 times the 23.8 percent Federal Tax on Dividends equals $23.80 in Federal Dividend Tax that you would have to pay. Your State may or may not also have a tax on Dividends received.

Dividend Taxation in the United States

The current top marginal tax rate on dividend income is 23.8 percent for taxpayers with an adjusted gross income of $200,000 or more ($250,000 or more for married filing jointly). This includes a 20 percent rate on dividend income plus a 3.8 percent tax on unearned income to fund the Affordable Care Act. States also tax personal dividends at top marginal rates that range from zero in states with no personal income tax,[3] such as Alaska, Florida, and Nevada, to 13.3 percent in California (Table 1).[4]


Here is a link for more information:

http://taxfoundation.org/article/united-states-high-tax-burden-personal-dividend-income

Sincerely, Senior Chief