Tax Time to Report Finds as Income

Pinball · Dec 16, 2016

There are only two things you need to remember...
Big Brother is always watching and...
Soylent Green is made out of people...
I do like the hat

Honest Samuel · Dec 17, 2016

Please read # 16 for great information.

luvsdux · Dec 17, 2016

One has to decide what bumps their own conscience, I'd say. However, unless a pretty fair amount is involved I'm inclined to say let your finds buy your gas and batteries and don't worry about it.
luvdux

sprailroad · Jan 31, 2017

OK, Just now read this thread. You mean, the penny's etc I find I should report as income? Really? Oh I got it, this must be an Early April Fools day joke for 2017. To me it is.

hvacker · Jan 31, 2017

Finding something won't be a problem until a paper trail is created if the penny is sold for over $600 and the buyer does their due diligence and reports the sale as an expense on their schedule.C. Then he required forms get sent to the IRS. There are private parties that do buy and don't report.
Like any flea market. I know some fleamarketeers run legal. Even charge sales tax.

Income reporting doesn't need to happen unless the income exceeds $600 last I checked.

Tom_in_CA · Jan 31, 2017

hvacker said:
... Income reporting doesn't need to happen unless the income exceeds $600 last I checked.

The "$600" limit you speak of, is for IRS form 1099 reporting. That's just the trigger-point at which a payee has to report to the IRS , that they paid so & so in-excess-of $600 for something. But that "$600" threshold is merely the honor system (to which you know that the IRS is now appraised of the income you got). It STILL doesn't mean that incomes lower than that don't still have to be reported. That's only a dollar figure for the buying agency to which to trigger reporting.

Hence yes: Even meager clad totals (that you spent) .... if you wanted to technically seek through the tax codes, must be reported. Which is exactly why all of us do. As does the fellow who finds a dollar bill on the street, and so forth.

victhedog · Jan 31, 2017

Tom_in_CA said:
Well yes, certainly, of course. We abide by the "MD'rs code of ethics" after all, which says to "Know and Obey all laws".

The md'r who reports his earnings on his income taxes, can also deduct for his expenses . Equipment, gas , etc.....

and all the beers are a write off

Limitool · Jan 31, 2017

So if a retired guy/girl had a hobby and turned construction grade 2x4x8's into a $500.00 - $3,000 p/month net return should he/she "report" it....? Now I know we're not talking about MD'ing finds but if it was.... who the hell would have an interest in reporting it for just this small amount of money?

Tom_in_CA · Jan 31, 2017

Limitool said:
.... who the hell would have an interest in reporting it for just this small amount of money?

Those that abide by the laws

Xraywolf · Jan 31, 2017

Would not consider it for a moment

Johnnybravo300 · Jan 31, 2017

They would take every dime you offered them thats for sure. Hehe
No thanks, there's nothing patriotic about paying a government taxes.

Xraywolf · Jan 31, 2017

My last check was $2,550 gross, take home $1,745.

Get taxed enough, sure am not going to volunteer more nickels and dimes for them to pinch.

Honest Samuel · Jan 31, 2017

IRS is not interesting in small amount of money, like millions. Stop complaining, be happy that you do not live in a state that has state income taxes like Connecticut. Good hunting and only report millions that you find.

FreeBirdTim · Jan 31, 2017

Those that abide by the laws

EBay (and other companies) stash billions in offshore accounts to avoid paying taxes and you want me to declare the $150 I found while metal detecting? Are you serious?

Tom_in_CA · Feb 1, 2017

FreeBirdTim said:
EBay (and other companies) stash billions in offshore accounts to avoid paying taxes and you want me to declare the $150 I found while metal detecting? Are you serious?

I believe what ebay and other companies do is legal. If there's a strategy (by carefully picking so-called "home offices" (even if only a post-office box), SO BE IT ! (do you blame them?)

So if you too care to stash your $150 "off-shore" like them, fine. But otherwise, we fully expect you to declare that income. If not, this post shall be reported to the IRS. But for a mere $20 bribe, I can be persuaded to keep quiet (I accept paypal) :thumbsup:

sprailroad · Feb 1, 2017

OK fell's, this is all nuts. HOW about this? I volunteer my time and effort to clean trash out of a park as a public service, not ONLY for the good of the public, but for the good of HUMANITY as well! Any coinage I should happen to come across, I clean up and reintroduce back into circulation, THUS saving the government and the U.S. Mint the time, effort and expense of minting new coins. I ask not for rewards or recognition from the public or the White House, I am simply being a good citizen! GOOD FOR ME! P.S. A $600.00 Penny? Don't I wish. A note: All coins reintroduced back into circulation are stacked into neat little piles for the public to pick and choose the coin of choice, one per person please. This message is for all IRS employee's and other government agencies who may just happen to be browsing this forum.

Mud Hut · Feb 1, 2017

I love paying taxes so much, I always inflate my finds by 1000% . Let's do the math 1000 x 0=0.

Limitool · Feb 1, 2017

Tom_in_CA said:
Those that abide by the laws

Well what law am I missing for such a small amount of money from a hobby I do and enjoy for a few hours a day...? I'm getting older (61+), enjoy the work in my wood shop and love making something for other folks to enjoy and/or mostly their children or grandchildren.

Tom... Why would any "law" care about such a small amount of money?

hvacker · Feb 2, 2017

I, as a mechanical contractor have I received 1099 for billing less than $600. It just depends on the company I was doing work for. Some will 1099 for very small amounts. A penny found is as far as I understand is face value and would remain that way unless sold. The rules say it's income when you control it so by that logic you received a penny's worth of wealth.
I would probably not report small income w/o a 1099. It wouldn't match my schedule C.
Like I said if the penny was sold for a bunch and the buyer was a business watch your mail near the end of January.
That being said probably the only time the IRS might take notice is if you're audited. Then the IRS would need to track down the paper work.
I remember a contractor that when we were talking about taxes a question came up on reporting income. I asked him what he did with the 1099's. "I just throw them away" he said. My hunch was he didn't understand taxes (like many I've known) and this was his way of dealing with what he didn't understand.
Also I once was on the phone with the IRS over the rules. I asked the lady for fun if it was against the law to be a poor book keeper.
"No sir it's not!" she declared. Seems she was also frustrated with the rules.
Some talk of how complicated taxes are. Not really unless you have income that's complicated. The rules, believe it or not, are there to be fair as for some income is involved. Depreciation and rule changes help do that.

hvacker · Feb 2, 2017

Remembering something as to why anyone going into business needs to understand book keeping and taxes at least enough to understand them.
A home builder wondered why his bottom line wasn't what he thought it should be.
Seems his book keeper was extorting the business. Not unusual but in this case the book keeper was using disappearing ink on the checks and filling in her name. A little knowledge could have saved him and company a bunch. The paper reported the amount she stole was nearly $100000.over just a few years.