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<p>[QUOTE=&quot;Publius2, post: 8140644, member: 105571&quot;]Tax rules are different for businesses than for individuals.&nbsp; My comments are addressed to individual tax payers.</p><p><br /></p><p>First of all, nobody cares if you buy and sell the occasional junk Morgan and make a little unreported capital gain.&nbsp; But you should know that if you buy a Morgan for $20 and then sell it for $30, you now have a capital gain of $10 and are required to report that on your tax return and pay a 28% capital gains tax ($2.80).&nbsp; The fact that no one is going to catch you at this is immaterial.&nbsp; You still owe the tax.&nbsp; </p><p><br /></p><p>But if you &quot;forget&quot; to file and pay larger amounts, say $2800 of tax, your situation is quite different.&nbsp; </p><p><br /></p><p>The law requires each taxpayer to know what income they are supposed to be reporting on and paying taxes upon.&nbsp;&nbsp; &quot;Ignorance is no excuse&quot; and if you think otherwise, I wish you the very best of luck in your tax audit.&nbsp;&nbsp; Also, check into the tax troubles of two very prominent Americans, Willie Nelson and Wesley Snipes.</p><p><br /></p><p>So, it&#039;s supposed to be that you report your income types, sources, and amounts to the IRS based on the honor system.&nbsp; But because there is such a large amount of tax cheating going on (not as much in the USA as in say Italy or Greece but still quite a lot) explains why we now have third party reporting through Paypal/Venmo and a proposal in D.C. for the reporting of more than $10,000 annual throughput at your bank/credit union. </p><p><br /></p><p>And no, as a general rule, there is no <i>de minimis</i> amount of capital gains that is excluded from reporting as capital gains.&nbsp; If you make a capital gain, you are required to file on it.&nbsp;&nbsp; </p><p><br /></p><p>Tax law, regulations and tax court precedent is voluminous and cannot be reiterated in its complexity in this kind of venue.&nbsp; But the upshot is, &quot;If you earn it and there is no legal basis for excluding it, then you owe taxes on it and are required to file upon it as one kind of income or another.&quot;[/QUOTE]</p><p><br /></p>

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