This is a discussion on Stone Heart!! within the Off Topic & Humor Discussion forums, part of the The Back Porch category; Originally Posted by phreddy Don't let your friend forget that there will be taxes due on any amount he receives. It can be a nasty ...
From the IRS website:
All income from auctions, traditional or online, and consignment sales is generally taxable unless certain exceptions are met. This income is usually considered either “business” or “ordinary” income. In certain circumstances such income can qualify for capital gain treatment. There are also some exceptions where income can be excluded from taxable income.
Business income resulting from an auction or consignment sale is subject to the same taxes as the income of any other retail or service business. That may include income tax, self-employment tax, employment tax, or excise tax. A retail or service business owner must include this income in his or her business income.
A person must report a gain from a sale whether he or she operates a business or not. A reportable gain is the income above the original cost or basis of the item. These gains may be business income or capital gains.
OK tax law time, all auction houses do have to report any thing they make tis their business.
But if you look up the legal definition of "Income" and apply it money made from such private sales, do not qualify, at least that is what an old CPA told me a long time ago...
But then they could have tried to close that gap since, which brings us to how is it a private company (yes the IRS is a private company) employed by the government allowed to make tax law?
One other possible way around this that I have read of is to take it to another country that is more tax friendly aution it there, and leave the funds there, kind of like a off shore bank, until they are transfered into the US holders account, the money does not exist.
The government and BHO already takes more of my money that I care to think about and it would not pain me in the least for them not to get their hands on more of anyone Else's either, so it obvioiusly will be time to TAX lawyer up when this happens..
"The sword dose not cause the murder, and the maker of the sword dose not bear sin" Rabbi Solomon ben Isaac 11th century