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Gold/Mining/Energy : NP Energy Cp New -- Ignore unavailable to you. Want to Upgrade?

To: Lee N who wrote (21922)	11/6/1999 6:18:00 PM
From: Thumper3	Read Replies (1) \| Respond to of 22810

"So according to you, you can do a private sale or transfer of stock." You don't have to go through the stock exchanges to sell public company shares, but for most people finding someone to buy their stock is not easy, therefore the convenience of the broker is in finding a market for you. Also, the broker sends you a slip detailing the buy or sell price, monthly statement, etc... "Interesting! I do not quite understand the last part however. It seems that as far as income tax purposes, it is directly related on what you bought and sold it for, less broker fees. If you can prove that, I cannot see any problem with the IRS. Are you saying again that if it is a public company, it has to go through the market or stockbroker? Why should this be? Irregardless of what the market value is at the immediate time, if I decide to sell to an individual directly at a price slightly below the present bid price why would this not be a valid sale?" Regardless of when you sell stock or anything privately, the sale has to be in context. ie. if the market day high and low for a certain stock on the day of the trade is $0.48 - $0.50, you can't do the trade at $0.25 or $0.75. A trade such as that is a false trade made for artificial advantage (for whom it doesn't matter). That's where the IRS starts to have a problem with you and your trade. "Is what Bully states true that all public company shares MUST be traded on the floor." Bully is incorrect when he states that all public company shares MUST we sold through a broker and the stock exchanges. He's an old bucketshop stockbroker and becoming soft in the head (take your pills, Frank). He wants the commission. Old habits die hard. "What if I want to trade X number of shares of stock with another individual for X number of different shares at the present prices." To trade X number of shares at a certain price for X number of shares of another stock is fine. Again, the final value has to be in context. You wouldn't trade $10,000 value (ie. 10,000 ABC shares at $1.00) for $5,000 value (5,000 XYZ shares at $.50), would you? If you equal trade, you should also each get a signed receipt from each other for tax and business purposes. It's just simple business protection against your seller or buyer (whether it's your friend, sister, son or daughter) coming back at you and has the added benefit of a record for tax time. "Bartering has gone on for years. It is not subject to tax or anything else. It is immune to tax. This is a little different slant from what I originally posed however it is related. Comments?" Bartering is NOT immune to tax - not talking about tax dodging - and is subject to tax. Again value received for value given. It doesn't matter what the medium is - $US cash, gold, German marks, sweat equity, etc..... That the IRS hasn't shown an interest in you yet doesn't matter. If they wish, and have the knowledge of the transaction, they will expect tax from you if there's a profit and allow a deduction if there's a loss.