Cashing out your bullion when its time, tax question ?

I am so glad that my income is so low I don't have to worry about deductions!

 

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I'm pretty sure some where along the line I must have taken a vow of poverty.

 

Several smaller transactions at different places and there's no way anyone knows about it.

 

Deductions change so often that any money you make off of them is used to pay your CPA, who is the only person who can keep up with them.

 

CPA? I don't need one.

 

"That is interesting. How exactly do they define a hobby? Anyone have a link?"

https://www.irs.gov/uac/newsroom/five-basic-tax-tips-about-hobbies

 

Good catch!
I thought I had posted this link earlier, however, after looking back I see I didn't.

 

My tax problem this year is gambling winnings, the casino sent the IRS two notices of gambling winnings. To write off gambling losses up to the amount of winnings I need to have a record of gambling activities including wins/lossess, date.time, game, table #, and first and last names of other gamblers at the table. I got all the data except for names of other gamblers at the same table I'm using.

 

There is another method that the IRS can find out about your bullion sales and unreported income & thus your failure to pay taxes as well. My cousin who liked to sell things on the side sometimes via Ebay, sometimes in person (Craigslist, Facebook) etc. ended up learning the very hard way that a routine audit on your personal income taxes can end up revealing a whole lot to the IRS. And specifically leave them inquiring about where X, Y, Z dollars came from, went and why they weren't reported.

It's better to keep every receipt and go through the official process rather than trying to avoid paying taxes imo.

 

As a matter of routine, the IRS will ask about other sources of income, such as EBay, etc. and if you have a website. They will have no idea how much you make unless income is reported to the IRS, or you volunteer it. However, they may ask to see records, such as bank accts, credit card statements EBay sold listings, and PayPal statements. If you don't turn them over, or if it appears to be more than just a minor source of income, they have the option of writing a summons to those sources for the records. They can also pull a credit bureau statement if they wish, and are required to do so if you owe over a certain amount and will not pay the bal due.

Chances are, if you don't volunteer that you have an EBay acct, PayPal, website, etc, they won't have any way of knowing...unless it shows on your bank acct. And, they have no way of knowing that you are selling person to person, unless that person sends in a 1099 showing that he paid you.

Which brings up a side note. If you loan someone a bunch of money, or pay someone for something and don't receive it, send the IRS and that person a 1099 showing that you paid that amount to that person or business . You may never get your money or item, but they get to explain why the income wasn't reported.

The IRS can also show up in person with a demand letter to see records from an individual or business they believe paid you money. This rarely happens unless they believe they have been jerked around, or for large cases.

They also have a program called Accurint, which is law enforcement based that will pull up most everywhere you have lived, who lived there as a matter of record, who owned the places, neighbors, relatives, friends, vehicles past & present, real property, hunting licenses, liens, crimes, and sex offences…just to name a few.

And there are other sources.

However…this doesn’t get done if you pay and file on time, and don’t get pulled for audit.

 

Why does a certain rooftop scene from Shawshank Redemption come to mind?

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My take from this thread is that if you want to buy and sell bullion and avoid taxes then you must conduct your entire life in cash and buy and sell in small amounts at coin shows and the like. It seems to me that paying the taxes, which are only on the profits, is a much easier proposal.

 

That's pretty much it.

 

I don't play games with the IRS. If they catch you on something small, they will drag you thru the mud. They can go back several years and ask for paper on anything they wish. I could do this but I sure don't wish to. I value my time more than what I could have saved in taxes. It's not possible to win an audit.

 

I think it would be interesting to see the faces on the other gamblers at the table when you ask them their names and start writing them down in a notebook.

With that being said, unless you are under audit and they request the names, the only thing you can do is claim the deduction and try to explain why you didn't get the names. They won't disallow it just for not having the names unless you have other things going on that look shady, and they want to make a point. What are you to do if the person won't give you their name? Wrestle him/her to the ground and get their ID?

 

It's not worth it to conjure up past paper to prove your point, as is spending hours going to and spending with an exam person. Or the stress. Although it is not impossible to win an audit.

 

Bravo!

 

" What are you to do if the person won't give you their name? Wrestle him/her to the ground and get their ID? What are you to do if the person won't give you their name? Wrestle him/her to the ground and get their ID?"

You're right, I'd never ask for other players names. Also, I learned players can't claim their losses against winnings unless they itemize their taxes. People that can't itemize their tax returns really get shafted.