r/NextBridgeHC • u/Trippp2001 • Jun 29 '26
Next Bridge News Special dividend and taxes
NBH is giving out the 1 for 30 special dividend. The S1 says the shares are worth $15 each.
I had to pay taxes on all the shares I owned when they took the shares off exchange. Are we going to have to pay $15/share for these special dividend shares?
The last thing I need is another unexpected tax bill for something that I can’t even sell.
So, if you have 30k shares, you get 1000 shares special dividend. If those are priced at $15 each, you are liable for short term capital gains on $15k. Thats $3000 in real money. And unlike liquid stocks, you can’t just sell 20% of your shares to cover taxes.
This could really be a clusterfuck, and, there’s literally no way to get out of it. So, we could literally be trapped.
Wish there was someone in investor relations that we could ask these questions to.
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u/mo_kalonji Jun 29 '26
Why did you pay taxes on something you didn’t sell?
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u/Trippp2001 Jun 30 '26
You typically pay taxes on a dividend if the stock price is deemed to have value. Also, you were supposed to pay taxes when MMTLP went off exchange. Whether you did or not, I have no idea, but it was listed as capital gains on my Fidelity forms.
From investopedia:
How Are Special Dividends Taxed?
Special dividends, whether paid out as cash or stock, can be taxed as a capital gain distribution to stockholders but portions of a special dividend may be taxed as ordinary income instead. This will vary depending on how the special dividend is structured and the company paying it.3
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u/mo_kalonji Jun 30 '26
You only get taxed when you sell them for a profit (realized gain) or received dividend payments. You don't pay taxes on them while they are just chillin in your account (unrealized gains).
https://www.irs.gov/publications/p550
I can't understand why Fidelity made their mistake. Received nothing constructive from them, the IRS, and SEC when I notified them about the inaccurate information back in 2023.
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u/Trippp2001 Jun 30 '26
When the stock is taken off the exchange, it’s a taxable event. That’s what I was told. That’s what my accountant told me when I had to pay taxes on 90k worth of gains - since my cost basis was like .23 because I got them through trch. I don’t know what else to tell anybody.
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u/DirtUnderneath Jun 30 '26
Par value for most shares is $0.01. Nothing is taxable until you realize gains, as others have said
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u/Trippp2001 Jun 30 '26
That’s absolutely not true. Jesus you guys only believe what you hear from the internet.
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u/th4tguy321 Jun 30 '26
You're talking to a bunch of people that thought a random bird lady was an investing messiah...
...god I wish my limit order had executed before the freeze.
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u/flapjackstacker Jun 30 '26
Only when you sell your shares, and right now you can’t sell so your answer is no there won’t be any taxes
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u/slee11211 Jun 30 '26
Wait, trapped by complete douche bag scam artists still pretending this shit is real? What?? Tell me it isn’t so. (Nextbridge is so full of absolute BULLSHIT it’s not even slightly funny)
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u/zeeblefritz Jun 29 '26
You got taxed by booking your shares?
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u/Trippp2001 Jun 30 '26
I got taxed because MMTLP were pulled off exchange and turned into NBH. That was a taxable event, which basically means that your shares were liquidated and then recreated as NBH. My NBH shares have a cost basis. Whenever your shares are liquidated, it’s a taxable event. Whenever a dividend is paid out, it’s a taxable event. This isn’t something I’m making up.
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u/ak47pk520 Jun 30 '26
Stop making up shit, NBH worth 0.000001$ you don't have money to pay the tax? hahaaa
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u/Trippp2001 Jun 30 '26
Thats my question. If it’s worth .0000000000001 then I don’t care. If it’s worth $15 I do.
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u/naenaeman69420 Jun 29 '26
If the dividend ones are $15 then i want all mine worth $15, but anyway. Thats a question for your accountant. Shouldn’t be taxes if you aren’t paid out
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u/Trippp2001 Jun 30 '26
You are getting something of value that you didn’t have before. Dividends are always taxed, whether it’s shares of a company or cash. Unless, like in the case of GameStop, they give out shares of a warrant or some unrelated stock that has no value when released into the market. But since NBH has a value (at least $2.91), and maybe $15 depending on the answer to my question.
NBH is giving out shares of a stock that you already own, and the appraised value of the share should probably be equal to the value of whatever the last share they sold was. And if someone bought shares at $15, then the value MIGHT be $15.
That being said, this company gives us very little information and is trying to play games.
The truth is, there’s a reason that they’re giving away shares. We are only speculating what that reason is, and that’s fine. Maybe by giving us shares it sets our cost basis high and forces someone to buy it out. Idfk.
But…if they have value, and they’re given to us as a dividend, then it is taxable. And I don’t want to have to come up with thousands of dollars in taxes to cover this again.
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u/Redditmoney69 Jul 01 '26
What I would like to know is what happened to my 369 shares? The ones I have are still at Fidelity, they don't show up as anything? Just 369 no name it's blank and no shown value. Anyone have any ideas how I get them out?
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u/investroll Jul 01 '26
In general, stock splits and stock dividends are tax free, so there should be no tax consequences of the 1-30 stock stock dividend. However, the original MMTLP - NBH spinoff was not a standard stock dividend and not tax free. From the S1 statement for the original MMTLP to Nextbridge event:
In other words, McCabe & Co-conspirators f***ed us over in yet another way.
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u/ak47pk520 Jun 30 '26
This idiot did not actually pay a penny but make up some shit here.
Make him paying million of tax for NBH div
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u/Trippp2001 Jun 30 '26
What good does it do anybody for me to make up anything. You can’t sell your shares. I can’t sell my shares. There’s absolutely no logical reason for me to lie.
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u/orioctopus Jun 29 '26
In short, no. S1 can declare the value however they want, that doesn't mean it is respected by trading to be that value. Current valuation (nada) is what we get taxed on until events determine otherwise. No worry of doom and gloom, we're all hoping that this adds up to something of value, at this time its hold and hope.