Replies to post #81454 on CMKM Diamonds Inc (fka CMKX)

[Pedro2004]

gump90

Re: In Canada our tax rules are firm. If I 'give' shares to my family they carry my cost base for tax purposes. I don't get any tax liability.

--------------------------------------

Under United States tax law,

we consider this transaction as a "GIFT."

When a Gift is "given" to an individual, the "giver" must file a Gift Tax Return and pay any Gift Taxes to the US Treasury (IRS).

[joye1]

gump....

Amusing. That is the kindest word that comes to mind when I read this statement of your's....

You said...

..."NOBODY beats the tax man. I wonder if Urban thinks that he can.".....

I'm sure Urban knows this.

Out of respect for you gump....I use the word amusing instead of saying BS.

gump....I think you really know that Urban knows this too.

However...if you actually have a doubt about this....I'm comfortable in assuring you.....Urban knows.

Joy

[fung_derf]

gump....In the U.S., the cost basis goes with the stock unless the person giving them is dead.

[TSXminer]

Also Gump, shares "given" to another party are deemed income in the hands of that party based on the share price at the date of the transaction. Therefore, if say 1 billion shares are "gifted" (same as exercising a stock option) to Joe Blow, and the stock is trading at .0004, then the fair market value is $400,000. If the shares fall to .0001, and Joe Blow sells, he receives $100,000. Unfortunately, he is also on the hook for income tax on the original $400,000, which is more of a liability that the $100,000 he received for the stock.

The question is: who will catch up to Urban first - the SEC or Revenue Canada (or the IRS)?