The Conservative Cave
Current Events => General Discussion => Topic started by: thundley4 on February 19, 2012, 08:43:11 PM
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These should be of particular interest to DUmmies.
If you receive a bribe, include it in your income. page 31
If you steal property. then you must report its fair market value in your income in the year you steal it, unless in the same year you return it to its rightful owner. page 36
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C, or on Schedule C-EZ, (Form 1040) if from your self-employment activity. Page 34
IRS PDF document. (http://www.irs.gov/pub/irs-pdf/p525.pdf)
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Wow... I guess our prescription pill dealing neighbor has a lot of claiming to do.
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so if i steal property, i have to claim it unless i give it back in the same year.
lets say i stole something christmas 2010 but returned it news year day 2011.
i would have to claim it on my 2010 return, but could i then deduct it on my 2011 return?
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No, Rugnuts, that would be a non-business transaction, like a gift (Except what the IRS considers a gift is more complicated than that due to gift & estate tax). There are a lot of things in the Schedule C world that only work one way. I'd have to look it up, but IIRC I don't believe the IRS lets you claim business expenses or capital losses from illegal businesses anyway, you have to declare the gains but can't take expenses.
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:panic: :panic: :panic: :panic: I am gonna be audited !!!!!! :lmao:
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:panic: :panic: :panic: :panic: I am gonna be audited !!!!!! :lmao:
One thing I find interesting is the IRS does not give a hoot where you get your money as long as you pay your taxes on it.
Say you make your money as a hooker or a pimp, rob banks for a living or deal drugs. No problem for you when you put your occupation down as any of the above, IRS is not going to drop a dime on you, they just want you to pay taxes on the money you make from any source, legal or illegal.
Any of us can file a tax return with occupation as Paid Assassin, as long as we put down the amount for each hit and pay taxes on it, no problem. Then we can deduct business expenses, cost of doing business, weapons we need, fast cars, travel to the hit zone, safe houses, bribes to the cops to stay in business.
Was it Al Capone that was finally jailed on IRS charges for not reporting his income ??????