Do you have to pay tax when you sell a gifted car? Assume someone gets a used car as a gift that has a value under $10K. Now, a short time later, he wants to resell it. Does the law oblige him to pay any taxes arising from the sale? If so, how much? Assume he can sell the car for exactly $10K for ease of calculation.
A capital gains tax is due on the sale, if the sale price for the car is more than the adjusted basis of the car for the person who made the gift of the car. If a car had been owned by the donor as non-business property and not depreciated, and there are no major upgrades to the car (e.g. trading a V6 for a V8 engine), the adjusted basis of the car will normally be the cash price for which the donor bought it (assuming that the donor bought it for cash at arms-length). If the donor bought the car new, the sale of the car for $10,000 will almost surely be less than the purchase price that the donor paid. But if the donor bought the car used for less than $10,000, then there would be some capital gain on the sale which would be reported as part of one's California and United States income taxes in the year of the sale by the gift recipient. The exact rate due would depend upon the seller's tax brackets, which would also be based on other income. In addition, there would probably be California DMV charges for a new license and registration, which could be characterized as a tax, but which are normally paid by the purchaser, along with sales tax.
By using my ETH coin to purchase an NFT, have I just committed a potentially taxable event? Yes. When you purchase something with cryptocurrency, this is treated as a barter transaction for income tax purposes. Also, generally speaking, both an ETH coin and an NFT would be considered to be capital assets for tax purposes, just like investment securities like stocks and bonds. When exceptions do not apply (and no exceptions are applicable here), a barter transaction is taxed as if you sold the asset you are relinquishing in the barter for U.S. dollars at a fair market value rate, and then purchased the item you obtained in the barter in cash for that amount of U.S. dollars. If you purchased your ETH coin for fewer U.S. dollars than the ETH coin was worth when you bought the NFT, then you will have a capital gain in the transaction. If you purchased the ETH coin for more U.S. dollars than the ETH coin was worth when you bought the NFT, then you will have a capital loss in the transaction (although, because it is a capital loss, you may not be able to apply this loss to reduce you ordinary income immediately). I do not address sales taxes in this answer. The definition of a taxable sale varies considerably from state to state and the question of whether a purchase of an NFT is a taxable sale is simply an undefined open question in many sales taxing jurisdictions. Also, it is not at all obvious under what circumstances a particular sales taxing jurisdiction would have the authority to tax a particular NFT purchase. This would be a highly fact specific inquiry.
The tax in question that is a concern is probably not an estate tax due in connection with an inheritance tax, it is probably the federal income tax that applies to the beneficiary in some way. Typically, if there is a specific devise (e.g. I hereby leave you my nephew $10,000) that is distributed more than one year after the date of death, part of the inheritance is taxable interest income to the recipient. Another circumstance in which an inheritance could generate reportable taxable income is if the inheritance is of &quot;income in respect of a decedent&quot; (e.g. retirement account distributions, or a final paycheck). More generally, if the estate had taxable income in excess of $100 as determined in IRS Form 1041 (e.g. due to the sale of capital assets that have appreciated after the date of death, rental income, dividends, or interest received), this estate income is allocated to the beneficiaries of the estate receiving distributions and flows through to them as a result of the &quot;distributable net income deduction&quot; of the estate, and has to be reported on Schedule K-1 from the estate with the beneficiary's Social Security numbers. So, there are multiple reasons why a W-9 might be required in connection with an inheritance.
You can put conditions on bequests (subject to other laws that might require you to provide for children etc.), however, these must be antecedent to the gift: once a gift is given you can't call it back. Of course, you could set up a trust that owns the bequest with rules for when and how the beneficiaries can utilise them that effectively do what you ask. However, this is a morbid and sick way of trying to control people from beyond the grave. The acceptable way to do this is to come back as a ghost, vampire, zombie etc. instead.
Paying taxes with cryptocurrency is a potentially taxable event under federal tax law. It is equivalent for federal income tax purposes, for example, to paying taxes in kind with IBM stock. See, e.g., this IRS FAQ. You can owe capital gains taxes on involuntary transfers. For example, if you own a rental property and don't pay property taxes and it is sold at a tax sale, you owe capital gains taxes and depreciation recapture taxes on the amount realized in the tax sale if it exceeds your basis in the rental property (which it usually would since third-parties bid at tax sales).
Is it legal in the US for a company that rents out car parking spaces, to bundle the renting of a parking space to buying insurance for the content of the parked car? Yes. Honestly, I'm a little surprised that I've never see this practice in real life. All things not prohibited are allowed, and there is nothing, per se illegal about bundling services and requiring them to be purchased as a package deal (there may be some licensing issues for insurance sales involved, but those would probably be easily overcome). Sometimes bundling gives rise to an anti-trust violation, but neither the parking lot operation business nor the car insurance business are so consolidated that this would fairly be viewed as some kind of anti-competitive practice.
Yes. You can sell it for whatever you can get for it. The license allows you to watch the DVD. If you sell the DVD, you won't be able to watch it - but the buyer will. This is same principle that books are subject to copyright, but there is nothing stopping you selling your books second-hand to a dealer.
You are conflating the crime against the state of possession stolen goods with the common law tort against the owner for conversion. To your questions: How would this proceed? It seems like it would be very difficult to prove (short of getting public surveillance footage) that I even bought the item. If you read the second paragraph of the page you linked it says: In many jurisdictions, if an individual has accepted possession of goods or property and knew they were stolen, then the individual is typically charged ... If the individual did not know the goods were stolen, then the goods are returned to the owner and the individual is not prosecuted. Proof of the crime involves a "beyond reasonable doubt" standard of evidence of both the fact that you have the goods and that you knew they were stolen. If you become aware that they were stolen (e.g. the police tell you) and try to keep them then you have just committed the crime. Proof of the tort requires a "balance of probabilities" standard of evidence that you have the goods and that they belong to someone else; your knowledge that they were stolen is immaterial. In the first instance, the police would probably knock on your door, tell you why they were there and ask if the version of the story they have from the thief is essentially true. What happens next depends on your response: "Yes, I knew it was stolen; you better arrest me and I will plead guilty." This will play out as you expect. "Yes, I didn't know it was stolen, I will go and get it for you." You return the goods, give a statement and may have to act as a witness in the prosecution of the thief. You are down $1,000 but are now older and wiser. "No, I have no idea what you are talking about." Well, you have now committed the crime of hindering a police investigation and have also committed the crime of possessing stolen goods - you can no longer claim that you didn't know the goods were stolen; the police have told you they are. What happens next depends on if the police believe you or the thief. Surely they couldn't/wouldn't get a warrant to search my house? Want to bet? They certainly have enough to get a search warrant if they want one (probably). Whether they seek one probably depends on the value of the goods, how busy they are and how much you pissed them off. Could I be prosecuted if I didn't know it was stolen? Not if you return it as soon as practicable after being made aware that they were. The scam This seems like a lot of work for a very small return - spend your time worrying about things that are more likely to happen. Good Title All of this is tied up with the concept of good title. Basically, you cannot gain good title to property from someone who does not have good title themselves; if you buy goods from a thief you do not own them. For example, if A has good title to the goods, B steals them and sells them to C who sells them to D then A still owns them and can demand their return from D, D could demand the return of their money from C and C could do likewise with B but as far as A is concerned it doesn't matter that C &amp; B have lost money; that is simply too bad for them.