Would you report that $1M you got in previous poll?

Would you ?

 

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too risky nowadays. i would report it

 

sure...but I would also take whatever step within the law to shelter it...there are ways

 

I too would rather err on the side of compliance. The cost of trying to circumvent the law is just too high.

 

Do you think that if I knew how to hide that much money from the IRS I would publicly say so?

 

Well, 1 million its not that much nowdays. You can easily stock up on gold&silver , or do whatever other reasonable thing without getting too much attention. here is my math : say they have 20% chance of getting you, and if they get you you will be iprisonned, for, say 3 years ( which I really doubt, but lets suggest it ) so, basically it means that you getting 6-7 months for sure ( 0.2X36months ).
Meantime, if you report it you will pay 500-550K in taxes. So, you are netting $90 000 for each month you spend in jail. NET. So, its up to everyone to decide whether waisting 6 months of his life are worth 550 000 dollars. Political statement deleted. Post it in the Politics, Religion and World Affairs forum if you wish

 

I buy dacha on Sochi and say dazvidaniya Ameriku.

 

The problem with answering this question is that the previous poll did not say where the funds came from.
If from Aunt Sadie's estate, then the estate has already paid the taxes, and I am home free.
If it was a gift from Aunt Sadie, then I am still home free, since the donor pays any gift tax.
If I got it gambling, then I'm off to Vegas to log some time for tax losses.
And other variations on a theme, but, if it is income, then its income.
Better to be safe and enjoy part of the $1 million, than to watch your family enjoy it while you are in jail....
If there is any left after taxes, interest and penalties.

 

Sort of exactly what I was going to say. Poll is to uninclusive. Where did the money come from is relavent in this question.

 

The poll suggests that IRS would like you to report it, regardless of its origin.

 

Vlad:
Sure the poll rggests that, but, under the law, unless you are under investigation, you do not have to report anything but income.

 

right........

 

I sure hope everyone on this forum is getting their legal tax advice from; qualified professionals!

Title 26 US Code includes the profit obtained on sale of anything as reportable income. That would include property inherited or received as a gift if the sale price exceeds its taxable basis. Gambling winnings, TV game show prizes, and lottery winnings are defined as income.

The same rules apply whether or not you are under investigation.

 

Actually I was not referring to profit.
He was talking about $1,000,000. That was the subject of my discussion.
Of Course, Profit has to be reported, regardless of source.
However, at the same time, not all lesses are deductible (eg hobby losses are not deductible).

Qualifications Vary, as do reading of words.