40: Chapter 40: $250 million after tax

The screen displayed, in striking figures: -$61,380,000 (Federal Capital Gains Tax)

Wang Xiaopang was completely stunned. He was counting on his fingers, his lips moving silently as he clearly struggled to keep up with the massive subtractions.

"Furthermore," Dunn continued, his tone remaining steady, "we also need to consider the Net Investment Income Tax.

This is an additional 3.8% tax levied on high-income individuals and certain trusts, estates, etc.

Although we have carried out a certain degree of planning through offshore company structures, this tax must still be considered for the channels through which part of the income flows. After calculation, this tax amount is approximately eight million dollars."

The screen subtracted again: -$8,000,000 (Net Investment Income Tax)

"What about state tax?" President Chen Ran asked. He remembered that Lawyer Colt had mentioned earlier that Rhode Island state tax might be exempted.

"Good question." Colt nodded. "This is precisely the advantage of our initial structuring.

Deep Blue Explorer is registered in the Cayman Islands. Although this auction event took place in Rhode Island, the company itself is not a Rhode Island tax resident.

We have confirmed through communication with the Rhode Island Department of Revenue and the federal IRS that, based on the company's place of registration, operational substance, and the nature of the transaction, these earnings are not subject to Rhode Island state income tax.

This has saved us a considerable expense. Rhode Island's top marginal personal income tax rate exceeds 5%. If it were applicable, it would be another tax bill of tens of millions of dollars."

President Chen Ran understood.

This was the value of a professional team: avoiding unnecessary tax burdens through structural design under the premise of legality and compliance.

"After deducting the aforementioned major taxes and fees," Dunn summarized, "we still need to pay some smaller items, including legal fees, our team's service fees, financial accounting costs, and potential bank handling fees for cross-border fund transfers. This portion totals approximately five million dollars."

The last line: -$5,000,000 (Other miscellaneous expenses and professional service fees)

On the screen, a final formula and summary of figures were presented:

Total Revenue: $373,700,000

Less: Auction Commission and Fees -$45,800,000

Net Auction Revenue: $327,900,000

Less: Deductible Cost Basis -$21,000,000

Taxable Income: $306,900,000

Less: Federal Capital Gains Tax (20%) -$61,380,000

Less: Net Investment Income Tax (Estimated) -$8,000,000

Less: Other Miscellaneous Expenses and Professional Service Fees -$5,000,000

————————————————

Estimated Net Income: Approx. $253,520,000

"About 253.52 million dollars." Dunn announced the final figure. "Considering some minor variables in the fund transfer process and potential sporadic expenses that may occur later, our conservative estimated range is between 220 million and 230 million dollars.

The actual figure should be close to, or even slightly higher than, the upper limit of this range."

The study was quiet for a few seconds. Only the air conditioning system emitted a faint hum.

"In other words," President Chen Ran spoke slowly, his gaze sweeping over the long list of subtractions on the screen, "what we will actually get in hand is about two-thirds of the total transaction amount."

"Yes, Mr. Chen." Colt affirmed. "In such a high-value transaction in the United States, this after-tax ratio is already a very ideal result, thanks to the early structural design and the full utilization of cost deductions.

If it were held and traded directly in a personal capacity, the tax burden could have been much heavier."

Wang Xiaopang finally recovered a bit from the shock of the numbers. He swallowed and muttered, "Two-thirds... deducting one-third... one-third is over a hundred million... dollars..." He felt a twinge in his heart, even though the money wasn't his.

President Chen Ran nodded, his face expressionless. This ratio was about the same as his rough estimate earlier.

Behind the massive wealth were equally massive taxes and costs; that was the rule of the game.

The key was that the remaining two hundred million-plus was clean, legal, and freely disposable capital.

"What about the path and timeline for the funds to enter the accounts?" President Chen Ran asked the next critical question.

Dunn switched the screen display, showing a complex diagram of fund flows.

"After deducting its commission and fees, Christies will pay the funds into our designated escrow account within ten working days.

Subsequently, our team will immediately initiate the tax filing and payment procedures.

Communication channels with the IRS have already been established, and it is estimated that the entire filing and tax payment process will take four to six weeks.

After the tax payment certificate is obtained, the remaining funds will be remitted in batches, through multiple compliant channels, into your designated accounts in the Cayman Islands and Switzerland.

The entire process is expected to take about two months for the funds to be fully in place, clear, and under control."

"Two months." President Chen Ran repeated, tapping his fingers lightly on the table. "Very well. During this period, I will leave all legal and financial compliance work to you, Lawyer Dunn, Lawyer Colt."

"It is our duty, Mr. Chen." Dunn and Colt nodded simultaneously.

By nearly noon the next day, the villa had finally quieted down completely.

The headache of a hangover and the exhaustion after the revelry hung over most of the people.

Thanks to his constitution strengthened by the system, President Chen Ran didn't feel much. He got up early, took a shower, changed into comfortable loungewear, walked down to the open kitchen, and poured himself a glass of warm water.

He had just taken two sips when he heard the pitter-patter of footsteps coming from the stairs.

Chen Yan, with messy hair and wearing a nightgown, rubbed her eyes and wobbled down the stairs. Seeing President Chen Ran, she mumbled a "Brother," then collapsed onto the large sofa in the living room, burying her face in the cushions, moaning, "My head hurts... my throat hurts too... I will never drink that much sparkling water again..."

"That was champagne, not sparkling water." President Chen Ran walked over with the water, placed another glass of warm water on the coffee table in front of her, and said, "Drink some water."

Chen Yan struggled to sit up, holding the cup and taking small sips.

After a while, Xiao Lin, Wen Wen, and Xiao Yu also came down one after another, all looking listless, slumping on the sofa in disarray.

Wang Xiaopang was the last one to come down, his eyes as swollen as peaches. Seeing President Chen Ran, he waved his hand weakly and said in a hoarse voice, "Brother Ran, morning... I feel like my soul has left my body; the one talking to you now is just my shell..."

President Chen Ran chuckled and asked Lin Wei to prepare some light breakfast.

By the time everyone had recovered a bit and was sitting at the dining table, drinking porridge and eating toast, the earth-shattering 370-plus million dollars from last night truly returned to everyone's minds.

The atmosphere was a bit subtle; the excitement was still there, but there was a touch of unreal trance and a hint of confusion about what to do next.

Chen Yan took a bite of bread, suddenly remembered something, looked up at President Chen Ran, and asked hesitantly, "Brother, that... 370-plus million, that was the auction price. This money... after taxes, how much will be left?" This question voiced everyone's inner thoughts, and they all stopped drinking porridge and looked over.

President Chen Ran put down his spoon and wiped his mouth with a napkin.

Wang Xiaopang immediately answered, "I know, I know!"

He paused deliberately, looking at the pairs of eyes staring intently at him, and gave the number: "I heard a bit yesterday. After deducting all taxes, commissions, and costs, it's about between 220 million and 230 million dollars."

220 million dollars.

The dining table was quiet for a few seconds. Then, Wen Wen gasped sharply, as if she had choked, and started coughing violently. The spoon in Chen Yan's hand fell into her bowl with a "clatter." Xiao Lin and Xiao Yu looked at each other, both seeing the same dizziness in the other's eyes.

Over 200 million dollars. Net income. Even after deducting the terrifyingly large amount of over 100 million dollars in taxes and commissions, what remained was still an astronomical figure they couldn't imagine.

"Two... over 200 million? Dollars?" Wen Wen finally caught her breath, her face flushed red. "Deducting over 100 million, and there's still over 200 million? I... let me calculate..." She started counting on her fingers again, then gave up, her eyes glazing over. "Anyway, it's... too much to spend, right?"

"Theoretically, if it's just for ordinary consumption, you couldn't spend it all in several lifetimes." President Chen Ran nodded, then added, "But we have other plans, and the money may not be enough."

This statement stunned the young people again. Over 200 million dollars isn't enough? What on earth is Brother Ran/Brother planning to do?

Before they could think it through, the system's notification sound rang in President Chen Ran's mind, clear and cold:

[san antonio treasure successfully liquidated. Task 'First Pot of Gold from the Deep Sea' over-completed.]

[Issuing rewards:]

[1. Elite Tactical Action Group: 50-person formation. All members are system-generated cyborgs with perfectly integrated backgrounds. They possess service experience in top special forces such as the former US Army Delta Force, Navy SEALs Team 6, and Rangers. They are proficient in urban warfare, field survival, counter-terrorism assaults, VIP protection, and intelligence gathering. Well-equipped and ready for deployment at any time. Team leader codenamed Heavy Hammer.]

[2. Comprehensive Legal Advisory Group: 50-person formation. All members are system-generated cyborgs, all graduates of top US law schools, possessing dazzling resumes working on Wall Street, in Silicon Valley, or for federal agencies. Professional fields covered:]

International Law and Cultural Relic Repatriation Dispute Experts (3 people)

Maritime Law and High Seas Salvage Framework Experts (3 people)

International Tax Planning Experts (3 people)

Business Law, Auction, and Transaction Structure Experts (5 people)

Intellectual Property and Media Law Experts (3 people)

Immigration Law and Visa Affairs Experts (2 people)

Criminal Defense Lawyers (2 people)

Corporate Law and Structure Building Experts (5 people)

The rest are senior associate lawyers and legal researchers.

[All team members are absolutely loyal and are in position. They can be contacted through encrypted channels. Please confirm, Host.]