need a tax
expert for this
what about zeek rewards. is it posible the bids they claim can be writtenoff and how isthat you get 1099 on income they didnot physically send to you and also then they have the money. also they do never answer their phones and when you google map the address it comes up as empty farm field? what do you know about this i ahve invested and am very concerned
in case you do not know zeek rewards is a mlm penny auction company
i have invested 2000 with them and have some serious reservations about what i did.
1. the $2000.00 i invested is for 2000 bids =$1.00 each that i am giving away to people so they can go to zeekrewards penny auction site to bid on items. so far so good there is no question in this case that my 2000.00 investment although they carefully do not call it that is a cost of doing business.
2, here is where it gets mirky. at the current time they are returning on average close to 2% per day. so to keep in simple i make about $40.00 a day which i have two options. first i can say i want to reinvest this $40.00 back into buying more bids that the company can then give away. at that point my account lets say i start with 2000.00 is credited for $40.00 in cash which means i started based on the 2% return at $2040.00 so in my mind my account should go back down to @2000.00 but no what they do is they give me vip points for 40 on which the daily return is calculated so i have supposedly bought 40.00 worth of bids and at the same time i am credited the 40 points
i have been told by distributors that i am able to write off the $40.00 that supposedly got in cash to buy bids and i have said it can not work that way cause i got 40 points so my point total is 2040 on whihc tomorrow my return compounded is 2% on 2040 so now i have 40.80 to buy more bids and then they also give me 40.80 points so my new balance for the next day is 2040+ 40.80= 2080.80 on which the next day i will have 2% compouded so forth and so on. and this is how people who invested say 4000 in oct of 2011 have 50000 in points on whihc they are supposedly making 2% compounded or it that example about 200 a day that goes into bids and then they get 200 more points.
it seems to me from an irs stand point of view that this would be looked at as the bids have 0 value since on the one hand they show cash you do not get and then give you the points.
i am so skeptical. and when you call customer service after waiting for 2 houurs they are a third party custoemr service provider and then when you try the home office then never answer the phones.
then here is the real sketch part. on the increase in the value in your points even though you do not get a check each day you are sent a 1099 and of course conveniently the company has the cash.
now it is true that people are getting money out each day.
i just really wonder if this has ponzi scheme all over it.
how can you write off the bids when you get points back
and these other questions i need your advice
i have googel mapped them no such building shows up have called their customer service it is a third part waited 2 hours and they can not explain how you get a 1099 on the increase in points and do not get any cash