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If the proceeds exceed the basis it IS income. And fully taxable.
To simplify what you said......"if your used stuff sells for more than what you paid for it new then you owe income tax on it"
So that $1000 couch you sell 10 years later for $100 to the college kids down the street is tax free but if you were to sell that used mattress with DNA samples for $1000 and you only paid $600 then you owe on the $400 profit.
That being said, most people's used stuff is worth less than they paid for it new.......
Cash, for a second job is a good idea, easy to hide. You need to pay taxes on a full time or high paying job, at least some of it. Remember , a paycheck, taxes for ssdi, ssi, retirement.
You can do a 1099 form for taxes, desuct business expenses, but gotta pay into it some how.
Foodtruck, street vendors, taxi/cab service, delivery boy, should all fill out 1099 at tax time. Even those tipped employees, making big tips all years long, report some of it for your own good.
What happens when you want a loan, and nor reportable income? Apply for an apartment? No trace of taxes, how are they supposed to trust you can pay?
I'm not reading all 15 pages of this but for me I see people who are undocumented working for pure cash. They would happily work legally if becoming citizens wasn't so dang hard. But that's what they gotta do to support their families.
I'm not reading all 15 pages of this but for me I see people who are undocumented working for pure cash. They would happily work legally if becoming citizens wasn't so dang hard. But that's what they gotta do to support their families.
You mean ILLEGAL right, as in not here legally? Just want to be sure we're talking about the same thing...
What do you think logically, morally and financially about people who work for cash and don't pay taxes?
Many of my blue collar friends got tired of a formal company paying them $20 an hour for a handyman, hauling and landscaping work and decided that they would branch out on their own.
They advertise on Craigslist as labor and are getting more work than they can handle. Cash only, $50 an hour tax-free. Some days they work from dawn to dusk and earn $500.00. They won't get rich but that is great for people who are basically unskilled and work with their hands. One used to make $8.50 an hour stocking shelves at Safeway.
As a resident of the USA, what do you think about people who work for cash only and don't pay taxes doing jobs on Craigslist?
If they get disabled there is no money for social security disability.
But on the other hand, one of my friends made $18K one year at the grocery store which he paid taxes on and then when he started his Craigslist jobs he made $60K tax-free the next year.
Look, time comes and your body simply refuses to do hard work. Late 50s maybe.. 60.
So what you gonna do? You have no savings (IRS will audit your bank accounts if you do), cash in mattress is either gone (got to live life) or lost/loses value in mad inflation. You have no medical or pension. What you gonna do? Cheat again, get on SSI and flood forum bitching how low and insufficient public assistance is? Whatever you stashed - if any - in cash, will be gone fast and furious on medical bills and bad habits, developed during "got to live life" period.
So yeah, you want to work cash - work cash. But pay tax. If a guy was 8.50 an hour shelving and is now doing $50 an hour and $500 a day - pay damn tax and look into the future. Don't be penny wise and dollar foolish as life WILL get you.
To simplify what you said......"if your used stuff sells for more than what you paid for it new then you owe income tax on it"
So that $1000 couch you sell 10 years later for $100 to the college kids down the street is tax free but if you were to sell that used mattress with DNA samples for $1000 and you only paid $600 then you owe on the $400 profit.
That being said, most people's used stuff is worth less than they paid for it new.......
Correct. But that's not what you said, nor what I responded to.
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