Originally Posted by J_V
Did anyone actually pay taxes on the money that FTP had frozen? Seems pretty ridiculous considering we didn't know if we were ever going to get it.
Lucky for me, I'm a procrastinator and am just finishing 2011 taxes now, so I'm going to include my locked up FTP as income. What I'm worried about is that the DOJ will directly tax it and then I will be paying double taxes. What did everyone do, plan to do?
The DOJ isn't the IRS, they're not going to withhold taxes. You were supposed to pay taxes on your 2011 FTP profit because of some IRS mumbo-jumbo. Basically, you're not allowed to write the $$ off as a loss unless there is a 0% chance you're getting it back. You are supposed to pay taxes and then write it off in a future year if you get, you know, 0-99% back. That sucks considering we can have losing years or if you had giant 2011 profit it could exceed later profit, etc.
So presumably next year we'll all be writing off 90% of our UB balances as a loss ^_^