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Bklynracer

IRS- criminals to report stolen goods

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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

 

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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.

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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."

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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."

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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.

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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.

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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.

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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.

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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.  

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