nicodemus on Nostr: You’re conflating bitcoin with money in the eyes of the US. They are not the same. ...
You’re conflating bitcoin with money in the eyes of the US. They are not the same. Assets can exchange hands as often as a trust trades stock.
A distribution only occurs when the beneficiary of the fiduciary receives dollars (or any legal tender) from the value of assets managed by the fiduciary.
It’s only a taxable event if the dollars (or legal tender) have not yet been taxed as income. Penalties are a different matter altogether and have to do with the reasons behind the distribution as well as age and amount of distribution.
The trust can “spend” funds in any matter it wants so long as it meets the fiduciary responsibilities agreed upon by the beneficiary. If they’re both YOU, this is never a concern.
The only things you can’t do - or are a legal grey area - is have an entity “invest” funds in another entity controlled by the same person.
A distribution only occurs when the beneficiary of the fiduciary receives dollars (or any legal tender) from the value of assets managed by the fiduciary.
It’s only a taxable event if the dollars (or legal tender) have not yet been taxed as income. Penalties are a different matter altogether and have to do with the reasons behind the distribution as well as age and amount of distribution.
The trust can “spend” funds in any matter it wants so long as it meets the fiduciary responsibilities agreed upon by the beneficiary. If they’re both YOU, this is never a concern.
The only things you can’t do - or are a legal grey area - is have an entity “invest” funds in another entity controlled by the same person.