Better report those items you stole to the IRS

James

James

Staff member
On page 95 (PDF page 97), while discussing Other Income it states the following:

http://www.irs.gov/pub/irs-pdf/p17.pdf

Stolen property If you steal property, 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.

Bribes. If you receive a bribe, include it in your income.

Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040.

:facepalm: :lol::lol::lol::lol:
 
Travace

Travace

im so fucked... i forgot to report my 3 cents i made in that couple of months i made on my youtube videos last tax year


also i have a "friend" who has a "kid" and him and his kid did some illegal gambling. the kid cleaned house winning a grand total of $4.75 does "dad" have to claim that?
 
James

James

Staff member
bobkyle2:
Do i have to report my check from to you also :O
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Yes, it would go under charitable contributions. :thumb:

Travace:
im so fucked... i forgot to report my 3 cents i made in that couple of months i made on my youtube videos last tax year
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Yeah pretty much. :bonk: Expect to see an IRS agent at your door any day now.
Travace:
also i have a "friend" who has a "kid" and him and his kid did some illegal gambling. the kid cleaned house winning a grand total of $4.75 does "dad" have to claim that?
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Gambling winnings. You must include your gambling winnings in income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings.
 
James

James

Staff member
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it as explained in the Instructions for Schedule D (Form 1040). You cannot deduct a loss.

However, if you sold an item you held for investment, such as gold or silver bullion, coins, or gems, any gain is taxable as a capital gain and any loss is deductible as a capital loss.

Example.
You sold a painting on an online auction website for $100. You bought the painting for $20 at a garage sale years ago. Report your gain as a capital gain as explained in the Instructions for Schedule D (Form 1040).
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:thumb: That's why I class all my "items" as investment items. See I bought an investment (ticker symbol kx250f :devil:) back in 08 for $3,000 and I plan on having to take a loss this year when I sell it for $2,000. :( Oh well I at least get to write off a $1,000. :rocker:

Hobby losses. Losses from a hobby are not deductible from other income. A hobby is an activity from which you do not expect to make a profit.
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Motocross isn't a hobby for me, I expect to make a profit in a few years when I go pro. :thumb: :smirk:
 
rezrider

rezrider

I know there are some NOT SO SAVVY thieves that will in fact report it which is what the gov'ment is hoping from this ... and/OR... they were told this MUST be noted to cover all loopholes.... :prof:
 
James

James

Staff member
rezrider:
I know there are some NOT SO SAVVY thieves that will in fact report it which is what the gov'ment is hoping from this ... and/OR... they were told this MUST be noted to cover all loopholes.... :prof:
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I'm guessing that that's the reason why. :thumb: It's still pretty damn funny though. :lol:
 
Travace

Travace

it prolly holds people who actually steal accountable a little more. you steal a million... you pay the taxes on it as if you made it if you are convicted of the crime.

i actually like the law if it works out this way.
 
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