Would someone please clarify the following?
I am learning about PPP and do not understand how the tax effect of the profits fits in with the requirement to use most of the profits in a humanitarian project.
Assume I invest $100M in a PPP and generate profits. Those profits are taxable to a US citizen and will be around 35-40% (ord inc or ST cap gain). That leaves 60% left and a requirement to invest most of the profits in a hum. project.
Is the requirement to invest in a humanitarian project determined on a net basis (net of tax)? Otherwise, if the gross amount of the profits are invested in a hum. project, where are the funds sufficient to pay the taxes? Please advise if you can help.
Lastly, should I assume that a US citizen is paying a 35% tax on this income as it is trade profits from buy-sell transactions.
Thank you.
Boaz
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There is no need to use any of the profits in a humanitarian or any project.All such an offer is a scam.
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sulevss: I think Boaz is referring to this article found on the InsideTradeLLC.com website: Project Funding through Private Placement Investments | InsideTrade LLC Jamie | |||||||||
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I understand.But I do not agree with article.There were some good points,but some are misleading.We do not use any of these humanitarian things,we do not take up-front fees,and You can start with $1M.
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The yield itself is paid out to the Investor in the trading bank free from taxes . If you invest this money to your country you either pay tax in your country or you open company in a low tax Zone, and pay the taxes there. Then your foreign company can invest worldwide. The audit manager help the investors to find the best way to legalise the yields from trade. kredit2009@googlemail.com | |||||||||
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