Taxes and Auction Site Question

[joshuanip]

Originally Posted by birdman42

Well, here's the thing. Our federal tax system is based on voluntary compliance. That means you're expected to do the right thing without any prodding.

As a professional tax guy, I see the occasional person who's trying to evade paying their proper taxes. I send those people packing, for two reasons. First, I don't need the aggravation of dealing with the tax man when the client gets caught (and eventually they will get caught). Second, I don't need people like that in my life--abetting their actions is just bad juju. (Tax avoidance is fine--taking advantage of features of the tax code to reduce taxes.)

I'm with Ryan. I'm not going to answer any of your direct questions ("How much?" "How long?" etc. etc.) Doing that just leads down the path of "how about if I do it this way?" Do it right because it's the right thing to do.

Bill

I think there is consensus on this board over doing the right thing and basic ethics, but as a more important matter (to the rest of this board) is education, not advice, that we can do a little planning to legally minimize the bite from IRS. Again for you black and white homies, not advice, but just saying there is a path to look into.

[birdman42]

Originally Posted by joshuanip

...a little planning to legally minimize the bite from IRS.

Exactly. Tax planning to avoid paying unnecessary amounts is more than fine, it's responsible. But when the amount is necessary, you just have to do it.

[jayshum]

Just curious, but when you report earnings from a sale, should you use the actual price you paid for the card as the cost basis or the price you told your wife you paid?

Asking for a friend.