Updated: 3/30/2012 3:40 PM ET|
Bribes, thefts and other taxable gains
Gifts and inheritances. In most cases, property you receive as a gift, bequest or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends or rents, that income is taxable.
Hobby losses. Losses from a hobby are not deductible from other income. A hobby is an activity from which you do not expect to make a profit.
If you collect stamps, coins or other items as a hobby for recreation and pleasure, and you sell any of the items, your gain is taxable as a capital gain. However, if you sell items from your collection at a loss, you cannot deduct the loss.
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (.pdf files) if from your self-employment activity.
Jury duty. Jury duty pay you receive must be included in your income on Form 1040, line 21. If you must give the pay to your employer because your employer continues to pay your salary while you serve on the jury, you can deduct the amount turned over to your employer as an adjustment to your income.
Kickbacks. You must include kickbacks, side commissions, push money or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ, if from your self-employment activity.
Prizes and awards. If you win a prize in a lucky number drawing, television or radio quiz program, beauty contest or other event, you must include it in your income.
Pulitzer, Nobel and similar prizes. If you were awarded a prize in recognition of accomplishments in religious, charitable, scientific, artistic, educational, literary or civic fields, you generally must include the value of the prize in your income. However, you do not include this prize in your income if you meet all of the following requirements:
- You were selected without any action on your part to enter the contest or proceeding.
- You are not required to perform substantial future services as a condition to receiving the prize or award.
- The prize or award is transferred by the payer directly to a governmental unit or tax-exempt charitable organization as designated by you.
Rewards. If you receive a reward for providing information, include it in your income.
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry or silverware, your gain is taxable as a capital gain.
Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.
VIDEO ON MSN MONEY
I will tell you about the tax that REALLY bothers me.! I worked for over 40 years, paid my taxes with out fail.
I was so upset to find that I had to PAY tax on my Social Security benefits, haven't I already paid tax on that money I earned over the past 40 years? This is double dipping, our tax system really needs an overhaul.
Ohh Yeah, If I win at the Casino or find a envelope full of cash I'm really going to report that income to IRS.
Who needs legalized prostitution----------------------------------------------------------------------
both the federal and the state governments SCREW me every day!!!!!!
MSN Staff is obviously smoking Crack or promoting the IRS / Dept. of Treasury / US Governments' interest SHAMELESSLY.
Garage sale items are not taxable as income. You purchased the Item Retail, not wholesale with a business license or tax ID. You sold it at a depreciated loss. No gain. No tax. Even if you managed to sell it for more than you paid for it, your a fool to claim it, and dreaming if you think they'll ever find out.
Coins. Gold and Silver eagles and St. Gaudens have numerical value on them placed by congress through the US Treasury. If you sell them for federal reserve notes, it is IRRELEVANT under THE LAW what the fair market value is, the coin and paper have place on them numerical value from the sovereign and cannot be discriminated against. The 1oz. Gold Coin = $50 Dollars of lawful monies, the 1 oz. Silver Coin = $1 Dollar of lawfull monies. The Supreme Court ruled on this several times. No income, no taxes owed. Buy your Gold and SIlver COINS, keep and sell them as you wish.
You are NOT required to report ANY Income from illicit gains from criminal activity, that is a VIOLATION of your 5TH AMENDMENT RIGHT against self incrimination.
Hobby. This is just stupid. A hobby by DEFINITION is not a business and shows no intent to make a profit, even if it does, it is not income and cannot be taxed. For instance, set up a table at a gun show and sell your personally owned stuff-ammo, magazines, gear. you made money? Good, but it's not income-No tax. The ATF WILL NOT LET YOU HAVE A FEDERAL FIREARMS LICENSE if it JUST A HOBBY! You are NOT a BUSINESS with the intent to make profits. And how do they track cash from hobbies? They don't. They bully and use fear tactics to get you to had over money you do not owe.
You are a fool to fall for this infantile tactic if you do and deserve to lose your $$$.
The great thing about paying in tax dollars--------------------------------------
is watching the liars, whores, and thieves in DC piss it off like there is no end to it !!!!
Another joke is any lottery winnings.
1) I work hard and pay my taxes.
2) With what I have leftover I buy a lottery ticket.
3) I win the lottery ( A pool of money that has already been taxed)
4) I pay taxes on the winnings, therefore paying twice.. literally...
We are still in deficit... amazing...
What a joke, do these laws pertain to our so called Elected officials? Do they really claim their fair share? All monies earned, legal or Illegal should be claimed, (gifts, Illegal actives, kickbacks, sale of personal items, stolen property).
Are they claiming their Retirement and Medical benifits paid for by the taxpayer.
Are they claiming for their vehicle parking, paid for by the taxpayer..
Are they claiming for their exercise facilities', pool and indoor recreational facilities
Are they claiming a fair value for any meals received at a reduced cost or free.
Once elected to screw their constituants, Their jobs are in Wash DC, do they claim the expense of returning to their district paid for by taxpayer.
At the end of the year are they issueing a W-2 to thier misteses for services rendered
This is exactly why cash should never become extinct. The greedy government cannot track cash that you receive from cash transactions…unless you do something stupid like deposit it into a bank account. Basically, don’t be a moron with the cash you receive and the IRS will never know that it exists. Taxes are so much higher that we all need to start finding “under the table” ways to make cash just to keep our heads above water. The government is going to force us all into feeling like illegal immigrants who have to stay off the radar just to survive. Sad regression if you ask me!
Early on, taxes were voluntary!!!
The IRS, SSA, and the federal government are the biggest Ponzi schemes the world has witnessed!
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