We're not IRS experts (the U.S. federal taxing authority), so we're not authorities. Here's what our advisors have told us, but you should consult your own tax advisors for your particular situation. You may not rely on our advice.
What's the value of the stock I receive?
We determine the value of each share you receive using the price paid for iConsumer stock by third parties, at the time you earn the stock. As of 5/1/17, that is $.09 per share. Once iConsumer's stock is trading on a market, we will use the price reported by the market. Until then, we'll adjust the price depending on the price listed in the current offering circular at the time you earn your stock.
The value is determined at the time of earning, not at the time of delivery. The price of the stock when you take delivery may be more or less than when you earned the stock.
Stock earned from purchase activities.
The stock you receive in addition to (or as a substitute for) earning cash back on purchases at participating stores is a rebate. A rebate is a reduction in the price you paid for your purchase. It is not income, according to the IRS. Your tax advisor can be more specific for your particular circumstances.
Stock earned from referral activities.
The stock you earn because you helped iConsumer grow is income to you. You may owe income taxes on that income. Generally, you may be earning stock through member referral activities. If you earn and receive more than $600 in value (stock and/or cash) from us in a calendar year (under current IRS regulations) we are required to send you a 1099 form. The stock and cash you may earn as rebates do not count towards that $600 trigger. If we cannot send you a 1099, we cannot issue you your stock.
You have "basis" in the stock you earn, probably equal to the value used to calculate any income tax you may have owed when you earned that stock. When and if you sell that stock, you probably owe a tax on the gains you made, in excess of your basis. That is, if your value was $600, and you sell it for $1,000, you probably owe tax on $400.
Stock that I purchase as an investor.
We're not tax advisors and tax laws change all the time. But here's our take, as of January 2017, on the U.S. tax treatment of the stock you purchased for cash.
The amount you paid for the stock is your "basis". When and if you sell your stock, you may owe tax if you sell it for more than your basis (you have "gain"). If you sell it for less than you paid, you have a "loss", and that may mean you owe less tax from other activities.