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Post by EmRR on Dec 30, 2021 17:18:10 GMT -6
We just had a thread about this in the last month. There’s nothing new here for us. It’s a new obligation for them, and nothing about our tax liabilities change in any way. Not to put you on the spot, but if I sell my 1968 Fender Showman for $1,000 and don't report it to taxes.... is the IRS going to come after me with handcuffs and lawsuits? Depends if you're supposed to, if you took a deduction against it, etc. They will come after Reverb/etc for not doing their paperwork, but it doesn't change your paperwork. It doesn't matter whether Reverb/etc does or doesn't have to file papers, it doesn't change what you are 'supposed' to do. |
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Post by ericn on Dec 30, 2021 17:22:41 GMT -6
It'd be cruelly hilarious if this is the thing that brings changes to streaming payouts... when they determine we're easier to tax... I don't completely understand the ramifications of putting music on the blockchain, but if every sale was recorded and properly cataloged, it would be amazing for the creators. The problem is, the people in charge WANT that fog...BMI/SESAC/ASCAP don't want you to know how many times your song has actually been streamed or sold - then they'd have to pay you for it...and they're the GOOD GUYS. Imagine how much the labels/master owners fudge each second. If and when a musical artist does something like release new music via an NFT...they could release a limited run of the song. Nothing after it. Then there would be open bidding for it, and if it was re-sold, the artist would receive a cut. For instance - look at something like HMBL. They have NFT galleries. I believe you can create an NFT which to this point is pretty much just digital art. But if you created like an album cover and sold 10,000 of them, you could attach the ability to download the song. The record of the purchase is recorded on the blockchain (for eternity)...the question would be - how do you watermark the song? IDK. Would you not allow it to be streamed or played on radio? You think 1000 of those at $50 apiece - that's half a million dollars. That's more than co-writing a No.1 country song. For that matter - what if you sold 500 at $10 apiece - that's $5000. That's a ton better than any of my songs would make streaming on Youtube. Then, when and if it's sold again at a higher price because of scarcity, the artist gets a cut. Another question with it - how do you let people know where and how to buy it? HMBL is a company/platform I invested a tiny bit of money in - it's a fintech that's trying to build an app that is Venmo, Paypal, Amazon, Coinbase, etc in one app. This is the hope: one app that you can create on, sell on, offer in USD or crypto...you push a button and it works. Regardless of country...monetary exchange is already built in. Yeah because computers can’t record data like humans did in the days when radio was king. |
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Post by svart on Dec 30, 2021 17:23:05 GMT -6
The IRS figured out that cash based workers rarely report more than about 60% of their income.
That comprises far more fraud than millionaires not paying taxes on unrealized stock gains and why they wanted the bank limits at 600$, you know, to catch billionaires.
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Post by ericn on Dec 30, 2021 17:33:34 GMT -6
The IRS figured out that cash based workers rarely report more than about 60% of their income. That comprises far more fraud than millionaires not paying taxes on unrealized stock gains and why they wanted the bank limits at 600$, you know, to catch billionaires. More is probably the wrong word, easier would probably be more like it. Most cash work is probably going to fall into either zero tax or a very low tax rate. I was just talking to a guy who owns a company that does mostly government contract work and asked point blank how much the company spends to minimize his tax liability and he just grinned and shock his head. If you have the money you can afford not to pay taxes. |
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Post by svart on Dec 30, 2021 19:49:00 GMT -6
The IRS figured out that cash based workers rarely report more than about 60% of their income. That comprises far more fraud than millionaires not paying taxes on unrealized stock gains and why they wanted the bank limits at 600$, you know, to catch billionaires. More is probably the wrong word, easier would probably be more like it. Most cash work is probably going to fall into either zero tax or a very low tax rate. I was just talking to a guy who owns a company that does mostly government contract work and asked point blank how much the company spends to minimize his tax liability and he just grinned and shock his head. If you have the money you can afford not to pay taxes. More is the right word, because it's more, far more. |
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Post by svart on Dec 30, 2021 19:51:05 GMT -6
You can tax every billionaire at 100% and take every cent they've earned and it would run the US federal government for about 7 months. After that, you'd have destroyed thousands of businesses and millions of blue collar lives and you'd still need to find the tax revenue to run the government from that point on.
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Post by the other mark williams on Dec 30, 2021 20:43:58 GMT -6
10K is for bank accounts $600 for commercial transactions. Of course you were always supposed to report this stuff, now they are just making the reporting mandatory. Yeah it’s going to be a major pain in the ass. The reporting was *always* mandatory. It’s just that they didn’t check behind you, so everyone was on the honor system. And a loooooottttttt of people didn’t report. |
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Post by gravesnumber9 on Dec 30, 2021 20:48:47 GMT -6
Confession... I don't do much "cash" work these days but I have done tons of it over the years. I've literally never once claimed a dollar of income that was paid to me in cash. I'm surely not the only one.
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Post by gravesnumber9 on Dec 30, 2021 20:51:19 GMT -6
Confession... I don't do much "cash" work these days but I have done tons of it over the years. I've literally never once claimed a dollar of income that was paid to me in cash. I'm surely not the only one. Also, in case I ever run for political office someday (which would only be because I couldn't find a gun with which to shoot myself in the head and decided I hate myself and that I deserve a living hell)... this is obviously hyperbole. |
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Post by Chad on Dec 30, 2021 21:27:10 GMT -6
There is NO WAY THAT IS REAL Yeah, it can’t be real, but it is FUNNY! ;-) |
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Post by Johnkenn on Dec 30, 2021 21:32:26 GMT -6
There is NO WAY THAT IS REAL Yeah, it can’t be real, but it is FUNNY! ;-) The sad thing is, I didn’t know for sure if it was or not. |
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Post by Chad on Dec 30, 2021 21:33:58 GMT -6
Yeah, it can’t be real, but it is FUNNY! ;-) The sad thing is, I didn’t know for sure if it was or not. LOL! When I first saw it.... Same!! |
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Post by seawell on Dec 30, 2021 21:38:04 GMT -6
Seems like it would be a simpler fix if the government would just stop wasting so much of the money we already send them 🤔
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Post by EmRR on Dec 30, 2021 21:44:03 GMT -6
On the military
Given the increasing reduction in tax rates over the last 70 years, all signs point to efficiency.
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Post by ericn on Dec 30, 2021 21:45:47 GMT -6
Yeah, it can’t be real, but it is FUNNY! ;-) The sad thing is, I didn’t know for sure if it was or not. There is a line on the 1040 to report any illegal income so the very sad thing is, and fucking damn it I hate to say this but I’m going to put it at 50/50 real or not. Now that is the saddest thing I have typed in a while🤪 |
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Post by ericn on Dec 30, 2021 21:56:15 GMT -6
More is probably the wrong word, easier would probably be more like it. Most cash work is probably going to fall into either zero tax or a very low tax rate. I was just talking to a guy who owns a company that does mostly government contract work and asked point blank how much the company spends to minimize his tax liability and he just grinned and shock his head. If you have the money you can afford not to pay taxes. More is the right word, because it's more, far more. Ok please point me towards a reputable source on this one because I’m doing some basic math in my head anb I just don’t buy it. Here is why, most of the under the table / unreported income I know about falls into 2 catagories 1. Um reported tips and and income. Most of this is at the low part of the income scale so even if it was reported it would be taxed at a very low rate, most probably still would not be taxed but it’s not worth the risk. 2 undocumented workers again even if reported the tax rate would be near the bottom. While I will grant you that the AMOUNT Of Income maybe greater unless you have numbers to back it up I’m going to live by the assumption that the RATE would be the biggest factor and negate your argument. Again yeah I’ll admit I’m assuming a lot in this argument but this is based on life experience if you have reputable figures I would love to see them. |
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Post by Johnkenn on Dec 31, 2021 1:11:16 GMT -6
You can tax every billionaire at 100% and take every cent they've earned and it would run the US federal government for about 7 months. After that, you'd have destroyed thousands of businesses and millions of blue collar lives and you'd still need to find the tax revenue to run the government from that point on. Just thought I’d quote this so it could be posted twice. |
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Post by Johnkenn on Dec 31, 2021 1:12:04 GMT -6
Confession... I don't do much "cash" work these days but I have done tons of it over the years. I've literally never once claimed a dollar of income that was paid to me in cash. I'm surely not the only one. Well, of course not. We already pay too much. Save what you can. |
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Post by Johnkenn on Dec 31, 2021 1:14:01 GMT -6
Seems like it would be a simpler fix if the government would just stop wasting so much of the money we already send them 🤔 This is the answer |
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Post by seawell on Dec 31, 2021 1:21:07 GMT -6
They’ve covered all the bases... <button disabled="" class="c-attachment-insert--linked o-btn--sm">Attachment Deleted</button> ;-) There is NO WAY THAT IS REAL It's real unfortunately 🤦🏻♂️ : www.irs.gov/publications/p17 |
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Post by Chad on Dec 31, 2021 10:12:41 GMT -6
Well, there you go. You're right, seawell ! 3/4th's down their page, just about 5 paragraphs above " 9. Individual Retirement Arrangements (IRAs)" (Chuckles uncomfortably...) Not only that... This is stated as well: "Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity."(^^ This must be what ericn was talking about.) Anyway... sorry my little "meme-joke" took this thread completely sideways... |
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Post by gravesnumber9 on Dec 31, 2021 11:46:48 GMT -6
Well, there you go. You're right, seawell ! 3/4th's down their page, just about 5 paragraphs above " 9. Individual Retirement Arrangements (IRAs)" (Chuckles uncomfortably...) Not only that... This is stated as well: "Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity."(^^ This must be what ericn was talking about.) Anyway... sorry my little "meme-joke" took this thread completely sideways... Ok, this seems kind of silly but it's actually there for a very good reason. This allows prosecutors to get much easier convictions from gangs and criminal enterprises. All they need to do is prove that the gang (or whatever) earned income that they didn't pay taxes on and they can get them for tax evasion. We've been doing it since Al Capone. If you didn't include in the tax code that illegal gains are taxable, it would be much harder to prosecute. It is funny though. |
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Post by seawell on Dec 31, 2021 13:19:56 GMT -6
Yeah that’s silly too but I was actually referring to this:
“ Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.”
This is new. Take something tomorrow and as long as you return it by 12/31 you don’t have to claim it 🤣
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Post by Guitar on Dec 31, 2021 13:25:02 GMT -6
Yeah that’s silly too but I was actually referring to this: “ Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.” This is new. Take something tomorrow and as long as you return it by 12/31 you don’t have to claim it 🤣 That's exactly it! It seems to "OK go for it" on stealing. Until you consider that it's probably a trap set up for creepy ass G men to catch stupid criminals. |
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Post by superwack on Dec 31, 2021 17:17:40 GMT -6
Yeah that’s silly too but I was actually referring to this: “ Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.” This is new. Take something tomorrow and as long as you return it by 12/31 you don’t have to claim it 🤣 I always wondered what would have happened to a guy like John Gotti if his 1040 said; - INCOME - PLUMBERS ASSISTANT : $28,500 INCOME (OTHER) : $16,753,000 I always assumed they Gov would be a-ok as long as they got their share - this new law makes me even more sure I was right 🤑 |
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