Legal or Illegal?

[Designer]

I understand the impulse completely, but what is needed is to elect honest politicians.

 

[runnah]

honest politicians.

 

[Designer]

I know, right? LMAO

 

[480sparky39 38]

Scurries off to Google 'honest politician'...............

 

[Designer]

I think there are some. Two or three maybe.

 

[Gary A.]

While I find government spending is often wasteful and misguided ... I really don't mind the paying of taxes. I think most/some/enough of the money directly and indirectly benefits our society.

 

[Designer]

Gee, Gary, I don't know where to begin....

 

[Overread14 2]

How about we DON'T begin a politics talk (unless you guys want to sign up and take to the subscribers section where you can)

 

[pgriz]

Well, whether we are ok or not with paying taxes, and whether or not they are well spent, the simple fact is that IF the revenue department of each jurisdiction decides that you ARE operating a business, then you have revenue, and you owe them their cut of the revenue (sales tax), and profit (income tax). Flying under the radar works up to the point they DO see you, and then life gets really complicated. Doing the business thing "legally" is also complicated, but less so than if gubermint decides you have what they think is their's.

 

[Overread14 2]

I'd ask yourself "do you want to make this a business - a serious one"

If the answer is even a tentative yes then I'd check out the full tax side to things - call up the local council as they are sure to have small start-up business advice which will give you a lot more information (accurate to your area). This basically means that you can start off on the right foot - as you mean to continue and avoids having that ugly bit where you're suddenly trying to work out how much you did take over the X amount of time you didn't pay and slowly turned into a profit working company etc...

If the answer is no and you're only going to make a tiny bit here and there chances are its not worth worrying about. Technically you're supposed to declare every single exchange - in reality you won't and most people don't when the values are small and one-off events.

It is risking it and if in doubt ask for formal professional advice so that you know the full ramifications - eg find out how much the min-earning threshold is for paying tax in the first place and what criteria it all fits under; you might find you can legally take a modest amount without any legal worries.

 

[joeymas]

My advice would be to call photography your hobby, and do not be afraid to accept a cash "tip" for helping out a friend.

If you start making so much money that IRS would take an interest... Well then my friend, you are now a pro. Incorporate - Good on ya!

 

[480sparky39 38]

Given that the IRS is going after people who bring in $200 from a garage sale................

....... as well as their 8-year-old who made $12 selling cookies and Koolade during the sale...............

I would say you should be upfront about it on your tax return.

 

[runnah]

I would say you should be upfront about it on your tax return.

I will when they are upfront about their spending...

 

[480sparky39 38]

I would say you should be upfront about it on your tax return.

I will when they are upfront about their spending...

I wasn't aware the IRS had anything to do with the nation's budget. I thought that was up to Congress.

 

[Nevermore1]

Check out your local and state govt small business offices. A lot of states have offices specifically to answer questions like these and they can let you know if a business license and whatnot is needed. As for taxes I can't provide much help on that. Somehow my sitter is able to charge based on how you pay her, if you pay cash you pay 30% less (the amount she would have to pay in taxes) than if you give her a check. Some people could say she's doing it "under the table" but she is fully licensed, registered and insured and has inspections by the County periodically so I don't know how she can get away with telling the State or IRS that she isn't making any money when there is a log of all the children in her care with the county. She gets $1400 a month just from me and that's for 1 1/2 kids, she has 4 other kids so she doesn't make a small enough amount to not have to file.