If you have shareholders, when you sell equity in companies, since they exist outside of the Net, it’s your responsibility to report these transactions and distribute the appropriate capital gains to your shareholders. If your personal token does not have shareholders there’s no need to report anything. You are required to report your equity sales once a year, before the tax deadline in a similar format to what you report on your tax returns. Most users can complete this annual reporting in minutes through our simple interface. If your personal token wallet doesn’t have sufficient capital to cover the dividends you need to transfer to your personal token shareholders, you will be prompted to deposit the necessary funds.

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Verification authorization

If you have shareholders in your personal token, once a year (tax deadline) the Net will verify whether you’ve accurately reported your capital gains (from selling equities in companies) and issued dividends to your personal token shareholders. You will need to consent for capital gains verification via: an e-signed Form 4506-C or OAuth to the IRS Individual Consent API. From your tax transcript we parse only rows that report dispositions of corporate stock or RSU/option exercises: Form 8949 lines with Box C/F codes or “code E” (stock). 1099-B rows where Asset Type = Stock. We ofc ignore mutual funds, ETFs, crypto, real estate, etc.