Mike51Merc
Well-known member
First, I'm not a fan of taxes and such, but this is how it is and has been for a long time. The only thing that's changing is the reporting requirements. The stuff that used to pass "under the radar" is now required to be reported by those that dish out the money, like Paypal and Casinos. There is a multi-billion dollar underground economy that is not being taxed and the rest of us have to make up the slack. The powers that be are chasing after it. Both the right and left agree on this issue, so there isn't a lot of argument to be had.
A 1099 shows income not profit. Only profits are taxable.
If you sell stuff, it's a business, except for some small yard-sale exceptions. $20K in revenue is not a yard-sale.
If it's a business, it has to file a Schedule "C" Profit and Loss Statement. The 1099 shows the revenue and then you show the expenses and deductions. The result is a profit or loss. Profits are taxed.
If you hide income, it's a crime. Remember when Ralph Kramden got audited? Remember the horse with a clock in its stomach?
A 1099 shows income not profit. Only profits are taxable.
If you sell stuff, it's a business, except for some small yard-sale exceptions. $20K in revenue is not a yard-sale.
If it's a business, it has to file a Schedule "C" Profit and Loss Statement. The 1099 shows the revenue and then you show the expenses and deductions. The result is a profit or loss. Profits are taxed.
If you hide income, it's a crime. Remember when Ralph Kramden got audited? Remember the horse with a clock in its stomach?
Last edited:
