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How do taxes work?
How do taxes work?
Updated over 2 months ago

Individuals: You will receive a 1099 tax form that aggregates all of your rental income, capital gains/losses, and staking income across all the different properties your've purchased in.

Business Partnership: Corporate entities (property holding companies) must produce a 1065 Form and submit it to the U.S. Internal Revenue Service (IRS), but is not sent to other countries or international agencies.

Non-US Residents: If you are located outside the US, you will be subjected to withholding taxes when you try to sell your tokens for a gain or withdraw your rental income. Some countries have Tax treaties with the USA, so if your country has one and you don’t want to pay withholding taxes, you will need to complete a Form W-8BEN, for individuals, and Form W-8BEN-E, if you invested as a business entity, and send the document to support.

This process is only available for foreign entities or individuals who have a SSN or ITIN within the USA. If you do not possess one of these numbers, you will have to be subjected to foreign withholding taxes.

Whimsy does not not provide tax, investment or legal advice and only shares the details to how the Whimsy business operates.

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