Carnival Corporation Increases Dividend eff. Jun/17

[JVilleGal]

I am not a tax expert, so do not know how this is handled. Either way though, I would not give advice to anyone on how to handle it unless you are a tax professional.

No advice given though I have certainly discussed this with my CPA.

 

And who the ---- takes tax advice from an unknown person on a travel forum :eek:

[richwmn]

No advice given though I have certainly discussed this with my CPA.

 

And who the ---- takes tax advice from an unknown person on a travel forum :eek:

 

No disrespect intended toward your CPA, and This is NOT intended to be tax advice.

 

The US Federal Tax Code is big and convoluted enough that if you posed this question to 3 CPAs, 3 Tax Attorneys and 3 IRS agents you would likely get 9 different opinions citing different sections of the tax code for support.

 

The fact that it appears in the annual report with a schedule of how it is to be applied points more to it being a benefit rather than a "GIFT" and therefore taxable.

 

Ultimately, the final answer will be if you are audited. The opinion of the IRS agent reviewing your return will determine its status.

[rkacruiser]

richwnn,

 

Your post #52 surely is one with which I agree. Why would an IRS agent doing an audit have any interest in any unreported income other than that which should have been reported due to a missing 1099 or any indication on one's 1040 of a positive capital gain upon the selling of CCL stock?

[JVilleGal]

richwnn,

 

Your post #52 surely is one with which I agree. Why would an IRS agent doing an audit have any interest in any unreported income other than that which should have been reported due to a missing 1099 or any indication on one's 1040 of a positive capital gain upon the selling of CCL stock?

 

 

No 1099 and not reported any where by any body!

Making mountains out of mole hills. I for one will enjoy my OBC and count it as an untaxable bonus :)

 

You all can report it if you want, have to wonder if anyone ever has? Never mind I don't care!

 

 

Sent from my iPhone using Forums

[avian777]

No 1099 and not reported any where by any body!

... I for one will enjoy my OBC and count it as an untaxable bonus :) ...

 

Have you received a 1099? Ya me neither ;)

 

As any professional would know, most "income" received (such as legal fess) is not covered by a 1099 but it is still reportable ... and taxable. The fact that a person does not receive a 1099 is indicative of NOTHING insofar as the taxability of the "income" received.

Edited April 14, 2017 by avian777

[JVilleGal]

As any professional would know, most "income" received (such as legal fess) is not covered by a 1099 but it is still reportable ... and taxable.

 

I count it in the gift category:) certainly not legal fees!

 

YMMV

[avian777]

Technically, you are supposed to self report any income you receive. This includes the OBC, small lottery winnings, cash paid for small services, gambling, etc. Realistically this rarely happens. You are also, at least in several states, supposed to report out of state purchases and include the sales tax owed when you file your state income tax. Again, this rarely happens.

 

No disrespect intended toward your CPA, and This is NOT intended to be tax advice.

 

The US Federal Tax Code is big and convoluted enough that if you posed this question to 3 CPAs, 3 Tax Attorneys and 3 IRS agents you would likely get 9 different opinions citing different sections of the tax code for support.

 

The fact that it appears in the annual report with a schedule of how it is to be applied points more to it being a benefit rather than a "GIFT" and therefore taxable.

 

Ultimately, the final answer will be if you are audited. The opinion of the IRS agent reviewing your return will determine its status.

 

As usual, richwmn, you hit the nail squarely on the head - no histrionics & no overreaction, just your opinion as you see it!!! Thanks.

Smooth sailing $$$

[avian777]

I count it in the gift category:) certainly not legal fees!

 

YMMV

 

:confused: ... you're an attorney??? :confused:

[Crazy For Cats]

This tax question would also apply to regular OBC that one gets when booking a cruise. I consider the OBC as a coupon off the price of the cruise. Whether right or wrong that will be my story if it comes up in an audit. [emoji6]

 

 

Sent from my iPad using Forums

[JVilleGal]

This tax question would also apply to regular OBC that one gets when booking a cruise. I consider the OBC as a coupon off the price of the cruise. Whether right or wrong that will be my story if it comes up in an audit. [emoji6]

 

 

Sent from my iPad using Forums

 

Have to wonder exactly how there would be any knowledge of having received an OBC and how an IRS would know about it????

Much less someone "auditing" you?

[Crazy For Cats]

Have to wonder exactly how there would be any knowledge of having received an OBC and how an IRS would know about it????

 

Much less someone "auditing" you?

 

 

As the government continues to find ways to get money from citizens it would be fairly simple. Match the custom paperwork we fill out from each cruise and to those who report CCL dividends.

 

 

Sent from my iPad using Forums

[avian777]

Have to wonder exactly how there would be any knowledge of having received an OBC and how an IRS would know about it???? ... Much less someone "auditing" you?

 

Consult with a tax accountant or an attorney (who does tax work) and you won't have to wonder about such things any longer ... :rolleyes:

[JVilleGal]

Consult with a tax accountant or an attorney (who does tax work) and you won't have to wonder about such things any longer ... :rolleyes:

Sarcasm 🙃 Heavy, no the IRS will not ever know until there is a reporting function. When it comes to the CCL Corp. vs the function of the day to day running of the cruise line, lets just say the Left Hand is so far from understanding the Right Hand that I am not concerned and will continue to happily treat my OBC as Tax Free!

 

We will just need to agree to disagree!

[lazey1]

My wife owns 100 shares of Carnival stock. Carnival Corp says the current schedule of shareholder benefits is applicable on sailings through July 31, 2018. We have our first HAL cruise booked for August 2018. Anyone know what would happen if we sent in the OBC request now; would it just be denied (for now) because there's no benefit schedule out that far yet? (Obviously, we can try it and see. Just curious as to whether anyone knows what would happen.)

 

Thanks

 

Twice when my travel agent sent in my proof of ownership of 100 shares of CCL stock requesting shareholder benefits over a year in advance I have received a telephone call from The Mariner Society requesting that I fax them a current copy 6 months prior to the cruise date. Since I don't have access to a FAX machine I send the requested proof to my travel agent along with the name of the HAL Mariner Society member that called me instead of calling her.:)

[whogo]

The IRS pays up to 30 percent of additional taxes paid to informants. If I were doing something that the IRS might interpret differently than my CPA would, I would keep quiet about it.

[avian777]

The IRS pays up to 30 percent of additional taxes paid to informants. If I were doing something that the IRS might interpret differently than my CPA would, I would keep quiet about it.

 

Thanks for the VERY sage advice, whogo, although it will probably fall on deaf ears insofar as one particular CCer is concerned!!! Shhhhhhhhhhhhhhhhhhhhh ...

[JVilleGal]

I'll let you all report your OBC, knock yourself out! Last audit I had it ended up with IRS owing me money [emoji39] Great for me but what a waste of taxpayer resources.

 

 

Sent from my iPhone using Forums