Venmo/Paypal reporting changes.

[BroccoliFarmer]

Ohh, it would be a business. More to throw at all the loop holes out there lol.

I wish I could agree with people and their thinking that every tax deduction is a loophole. Most of these so called 'loopholes' have a valid tax and policy implication. (a good example is research and development...they are trying to promote people to come up with new ideas by giving people generous tax breaks. The big one is the qualified small business stock exception where the first 10m of profit is tax free..again, as an incentive for people to start businesses). The problem comes into play is when people start seeing these policy encouragements as a profit center. A great example of this is the concept of 'cap and trade' These carbon tax credits represent a significant part of Tesla's operating income...they sell their tax savings to others.

So I would suggest we stop calling them loop holes and talk more about a simplified tax code.

 

[BroccoliFarmer]

That's what I thought ... but I'm no tax professional.

On a now slightly on topic tangent ... any idea why my tax return went up when I declared my "small business" closed? I assumed I'd take a hit, like having to "buy" all of the assets or something.

I would have to know more. There are some small business credits out there. There may be some non fully depreciated tax assets that you didnt claim a loss on. Maybe some legacy depreciation that suddenly got cut off. Way too many variables to gleen from a two sentence question.

 

[unchaotic]

I would have to know more. There are some small business credits out there. There may be some non fully depreciated tax assets that you didnt claim a loss on. Maybe some legacy depreciation that suddenly got cut off. Way too many variables to gleen from a two sentence question.

Just the fact that it wasn't something simple and obvious to you makes me feel a little better about it, lol.

 

[Eagle_Steve]

I wish I could agree with people and their thinking that every tax deduction is a loophole. Most of these so called 'loopholes' have a valid tax and policy implication. (a good example is research and development...they are trying to promote people to come up with new ideas by giving people generous tax breaks. The big one is the qualified small business stock exception where the first 10m of profit is tax free..again, as an incentive for people to start businesses). The problem comes into play is when people start seeing these policy encouragements as a profit center. A great example of this is the concept of 'cap and trade' These carbon tax credits represent a significant part of Tesla's operating income...they sell their tax savings to others.

So I would suggest we stop calling them loop holes and talk more about a simplified tax code.

OMG. Why so seriou lol. I am talking about this for giggles and using terms to get giggles.

Maybe I should put for giggles at the end of all the comments on here, so that point comes across, as we all know text alone does not do that very well.

I am using the term, as everyone else uses it. I do not mean to use it literally, just making fun of things. I do understand tax codes and why most of them are there. They have helped me out with my business and helped it grow to what it is because of it. With that said, it has also allowed other to be employed, make a good living and develop new things for the telco industry.

But again, my comments are merely for giggles and to poke fun at everything. None of my random comments about "loopholes" or anything like that need to be taken literally.

 

[unchaotic]

OMG. Why so seriou lol. I am talking about this for giggles and using terms to get giggles.

Maybe I should put for giggles at the end of all the comments on here, so that point comes across, as we all know text alone does not do that very well.

I am using the term, as everyone else uses it. I do not mean to use it literally, just making fun of things. I do understand tax codes and why most of them are there. They have helped me out with my business and helped it grow to what it is because of it. With that said, it has also allowed other to be employed, make a good living and develop new things for the telco industry.

But again, my comments are merely for giggles and to poke fun at everything. None of my random comments about "loopholes" or anything like that need to be taken literally.

My first language was sarcasm ... it makes the interwebs a dangerous place.

 

[BroccoliFarmer]

OMG. Why so seriou lol. I am talking about this for giggles and using terms to get giggles.

Maybe I should put for giggles at the end of all the comments on here, so that point comes across, as we all know text alone does not do that very well.

I am using the term, as everyone else uses it. I do not mean to use it literally, just making fun of things. I do understand tax codes and why most of them are there. They have helped me out with my business and helped it grow to what it is because of it. With that said, it has also allowed other to be employed, make a good living and develop new things for the telco industry.

But again, my comments are merely for giggles and to poke fun at everything. None of my random comments about "loopholes" or anything like that need to be taken literally.

sorry dude..im a tax guy. I have as much of a sense of humor as an proctologist when it comes to people talking about the tax code. I do my best to give people answers they can use and apply to their situation. The amount of tax misinformation out there is a lot to wade through..i do my best to try and help people on this forum just in case they need help.

 

[Eagle_Steve]

My first language was sarcasm ... it makes the interwebs a dangerous place.

Me too!!!! It is just hard to convey in text alone.

So hopefully now that that has been explained, we all get I am being an idiot lol.

 

[unchaotic]

sorry dude..im a tax guy. I have as much of a sense of humor as an proctologist when it comes to people talking about the tax code. I do my best to give people answers they can use and apply to their situation. The amount of tax misinformation out there is a lot to wade through..i do my best to try and help people on this forum just in case they need help.

I have a corporate buddy who's favorite story to tell is about an accountant that had a beautifully sorted and color coded spreadsheet he was presenting. He defended it saying that it was as creative as an accountant can get without risking jail time.

 

[Eagle_Steve]

I have as much of a sense of humor as an proctologist.

Love that quote man. And I feel ya. I just like to goof off sometimes and hard to see it via text on the ole interwebs.

But to your point, yes, people do not understand that there is good things that come from the "loopholes" (hehe laugh at that one come on). If it was not for certain tax codes, I would have been screwed. At this point, between my employees, my taxes and all of that, the IRS has more than recouped what they provided for a "loophole" (giggle some more) in my situation.

OK, I know you giggled at that, but in all seriousness, I understand your point of view on this and it makes sense.

 

[BroccoliFarmer]

I have a corporate buddy who's favorite story to tell is about an accountant that had a beautifully sorted and color coded spreadsheet he was presenting. He defended it saying that it was as creative as an accountant can get without risking jail time.

We accountants sometimes wander into fonts...but that is generally where we draw the line

 

[LPS Bum]

That's the government for you. If they can tax it, they will.

 

[BroccoliFarmer]

That's the government for you. If they can tax it, they will.

I honestly don’t have a problem with government taxing income. What I don’t like about it is the blatant unfairness. Be it allowing those with too much to accumulate even more through utilizing the provisions meant to spur investment or being it allowing some to pay nothing at all, there is a level of equity that lacks in our tax code. I see why people try to beat the system by playing games because the lack of equity in here and they believe cheating the system is the equalizer. A vigilant justice of types. ‘Shrugs’

 

[LPS Bum]

I honestly don’t have a problem with government taxing income. What I don’t like about it is the blatant unfairness. Be it allowing those with too much to accumulate even more through utilizing the provisions meant to spur investment or being it allowing some to pay nothing at all, there is a level of equity that lacks in our tax code. I see why people try to beat the system by playing games because the lack of equity in here and they believe cheating the system is the equalizer. A vigilant justice of types. ‘Shrugs’

A flat tax, applicable to everyone regardless of income, solves this problem. And close all the loopholes. That’s the fair way to do it.

 

[BroccoliFarmer]

A flat tax, applicable to everyone regardless of income, solves this problem. And close all the loopholes. That’s the fair way to do it.

I actually liked hermain Cain’s 9/9/9 tax plan. I think it needs to be tweaked a bit as I do think a slight graduated rate makes sens but I do think a flat tax with no tax code gimmickry is a good answer.

 

[flashsmith]

Yea it's alot easier to fleece the little guy instead of going after a wealthy individual who would rather pay a small army of tax lawyers and accountants to find ways to not pay taxes then to give the Government a dime. As a small business owner this is just another example of what I call picking the low hanging fruit.

 

[BroccoliFarmer]

I always find these conversations fascinating and ironic. I love when the very same people complain about rich people paying their ‘fair share’ quickly get upset when they are asked to follow the rules as well.

I rest my case

 

[smokin'reefer]

Resistance is futile, prepare to be assimilated.

 

[Brian_68]

They are reporting the transaction, not that it is assumed to be income. They have been reporting transactions over 10k already , but that does not mean you will get a bill for income taxes.

 

[Reefing102]

Just to throw it out there…could one not create a PayPal account for each family member in the household and then get $600 per person. Sure, it wouldn’t work for those that sell thousands at a time but if your just doing basic frags, I could potentially have $2400 in hobby sales that wouldn’t be reported.

Granted the above with said family members permission

 

[BroccoliFarmer]

Just to throw it out there…could one not create a PayPal account for each family member in the household and then get $600 per person. Sure, it wouldn’t work for those that sell thousands at a time but if your just doing basic frags, I could potentially have $2400 in hobby sales that wouldn’t be reported.

Granted the above with said family members permission

That is called structuring and is a felony under anti money laundering rules. Plus if the goal is to not pay taxes, then tax evasion.
Again, just citing rules not trying to take a moral high ground.