Bklynracer 1,259 Posted December 30, 2021 These people in charge are really stupid. this pretty much takes the cake 1 Quote Share this post Link to post Share on other sites
leahcim 673 Posted December 30, 2021 Same with profits from illegal activities. Still taxable, Capone found out the hard way. I suppose they could deduct the cost of lock picks, guns, etc as business expenses?: "By the late 1920s, Capone grossed about $70 million annually from liquor, prostitution, loan sharking, extortion, slot machines, and gambling. Unfortunately, he failed to report his earnings. While he could intimidate and bribe the Chicago police, Capone could not control the U.S. Treasury Department. Indicted for federal income tax evasion in June 1931, he was convicted in October. Capone received a sentence of eleven years in prison" https://www.encyclopedia.com/law/educational-magazines/gangster-al-capone-charged-income-tax-violations Quote Share this post Link to post Share on other sites
silverado427 10,555 Posted December 30, 2021 Brandon and his F up administration. Quote Share this post Link to post Share on other sites
leahcim 673 Posted December 31, 2021 You may get away with breaking the law, just don't run afoul of the IRS Quote Share this post Link to post Share on other sites
Bklynracer 1,259 Posted December 31, 2021 So you can steal $900 without being arrested, so I wonder if there's a limit to what you need to claim. Questions Is it net amount per looting or gross? is it the value of price tag or what you hocked it for? Can you itemize? Can you deduct Masks, Hammer, getaway car, fuel. Can you file jointly if you loot together ? Is there a hotline number to help eith questions. 1 3 Quote Share this post Link to post Share on other sites
bennj 215 Posted December 31, 2021 Bryklnracer, did a quick search on irs.gov, didn't see anything about reporting stolen property. Could you provide a direct link? Thanks, Ben Quote Share this post Link to post Share on other sites
leahcim 673 Posted December 31, 2021 53 minutes ago, Bklynracer said: So you can steal $900 without being arrested, so I wonder if there's a limit to what you need to claim. Questions Is it net amount per looting or gross? is it the value of price tag or what you hocked it for? Can you itemize? Can you deduct Masks, Hammer, getaway car, fuel. Can you file jointly if you loot together ? Is there a hotline number to help eith questions. I am not an accountant, but I think the IRS is just going look at your net profit. As always, one must keep good records and save the receipts, but any valid business expense should be deductible, including mileage to drive to/from the "job site." 2 Quote Share this post Link to post Share on other sites
leahcim 673 Posted December 31, 2021 https://www.dailymail.co.uk/news/article-10353749/IRS-tells-Americans-report-STOLEN-property-drug-money-income.html From IRS publication 17, under other income: "Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity." 1 Quote Share this post Link to post Share on other sites
silverado427 10,555 Posted December 31, 2021 Don't forget 10 % For the big guy. 3 Quote Share this post Link to post Share on other sites
Bklynracer 1,259 Posted December 31, 2021 1 hour ago, bennj said: Bryklnracer, did a quick search on irs.gov, didn't see anything about reporting stolen property. Could you provide a direct link? Thanks, Ben See Leahcim response below. Thank you @leahcim Quote Share this post Link to post Share on other sites
bennj 215 Posted December 31, 2021 Thanks Brklynracer, just wasted a 1/2 hr I won't get back. Did a more exhaustive search, the goobledegook these laws contain is outstanding. Seems this has been around since Al Capone. I guess I have to claim the $1 fake college ring I lifted from Tracy's 5 and 10 when I was 12 on my next return. Oh the shame. Quote Share this post Link to post Share on other sites
Bklynracer 1,259 Posted December 31, 2021 Sorry you wasted time on here, But Let's not get silly here, the intent was for all the looting that's been going on for the last 2 years. Do you really think they will follow the law, Their criminals. Just like they follow the NJ Gun laws like we do. Quote Share this post Link to post Share on other sites
bennj 215 Posted January 1, 2022 Yeah, I get it. Can't imagine anyone would think that someone unscrupulous enough to steal and loot would be honest enough to report said illegal gains on their tax return, let alone even do a return. 1 Quote Share this post Link to post Share on other sites
My1stGlock 144 Posted January 1, 2022 On 12/30/2021 at 9:46 PM, leahcim said: I am not an accountant, but I think the IRS is just going look at your net profit. As always, one must keep good records and save the receipts, but any valid business expense should be deductible, including mileage to drive to/from the "job site." You only need the receipts in case you get audited......lol. 1 Quote Share this post Link to post Share on other sites
leahcim 673 Posted January 1, 2022 10 hours ago, bennj said: Yeah, I get it. Can't imagine anyone would think that someone unscrupulous enough to steal and loot would be honest enough to report said illegal gains on their tax return, let alone even do a return. Well, as I said above, that is how they nailed Al Capone. Quote Share this post Link to post Share on other sites
EdF 323 Posted January 3, 2022 Yes . . . It has always been the case that you are supposed to report the "fair market value" of stolen goods. Not the price tag. No . . . You can't deduct the costs of carrying on illegal activities. Illegal income is reported on a Schedule 1. Costs would have to be carried on a Schedule C which is only for "legitimate business". This is why criminal enterprises often run legit businesses like car washes and auto repair shops. Their expenses can be buried in in the costs of running those businesses. No . . . They don't think that people are going to report these activities. But, the put the reminder out there because they CAN add those charges to others and, for example, if CA doesn't want to prosecute thefts of under $950, the Federal government can still charge those thefts as tax evasion. 1 Quote Share this post Link to post Share on other sites