posted on November 4, 2002 05:47:53 PM new
Are you being good little Ebayers, and keeping accounts of your dealings? I have the feeling, that though the IRS aren\'t rabid about online income yet, they will start doing it soon. Why? Because of the ever increasing growth of Ebay. Did you know that the banks keep track of non-work related income coming into your bank account?
I haven\'t been buying things to sell, just getting rid of some stuff in my collections, but my head hurts just thinking about the paperwork involved if I do get into this full time.
posted on November 4, 2002 06:21:22 PM new
I don't do it full time but I still claim it all - better to be safe than sorry. It is a big pain because I do most of it manually (pencil and a legal pad). Someday soon (goal for next year) is to try to find a better way. AW and paypal help with their downloadable transaction records.
posted on November 4, 2002 08:28:15 PM new
ihula, Its time to get UPTOWN, don't you have excel or something like it? I keep track of my mileage & anything else I do pertaining to my sales. This includes phone calls, my ISP, mileage to the USPS & back. Mileage to estate sale, auctions, & anything
else that I can legally itemize on a tax form. I won't lie, but I am going for everything that is legal. Over the past 60 yrs, I have paid more than my share of taxes. Not going to do it anymore.
posted on November 4, 2002 10:51:01 PM new
What do you mean banks keep track on non-work related income. How? By assuming anything that is in excess of direct deposit paycheck?
posted on November 4, 2002 11:04:39 PM new
That would be pretty hard to do considering many people are self employed and we get checks each month from about 10 different companies. These also change during the year as we pick up clients and drop others.
And, the only transactions the banks turn in are cash deposits or withdrawals of $10,000 or more.
[ edited by lindajean on Nov 4, 2002 11:05 PM ]
posted on November 5, 2002 05:59:26 AM newDid you know that the banks keep track of non-work related income coming into your bank account?
Before you get people stressed out, where did you get this information?
I spent ten years as a Bank Officer with one of the largest financial institutions in the world.
CASH is suspicious for money laundering, which is why a Currency Transaction Report is filed for CASH transactions of $10,000 (as LindaJean stated).
posted on November 5, 2002 06:17:14 AM new
I've tried various ways to record tax info, and never could keep up with anything. What has worked best for me is to record mileage and purchases in my check register! I put a star by anything that I need for taxes. I write in mileage whenever I drive ANYWHERE that has to do with a home business or Ebay. I live in the country and it's a 30 mile round trip to go to the PO. You bet I'm keeping track. I don't have a lot of profit, but mileage alone should wipe out any of it! And because I show a loss, it helps with a refund off of other income.
posted on November 5, 2002 07:02:14 AM new
I have Excel, but I'm afraid to admit that I don't know how to use it (plugging in the formulas and all of that). It's my goal. I also have a website that I'm supposed to be working on but don't have a clue how do develope that - another goal. The way my ebay sales were this summer I should have taken some time off then and figured out how to do it - now we're just too busy.
posted on November 5, 2002 12:36:57 PM new
Here are some articles on the subject, very informative for the newbies.
http://www.samizdat.com/auc14.html
http://www.samizdat.com/auc13.html
As for the info about banks keeping track of work money, let me look a little furthur and see if I can find it again, I didn't bookmark that page, sorry!
posted on November 5, 2002 12:46:13 PM new
I'm still looking for the information about banks keeping track of non-work related dough that enters your account!! But here is another interesting POSSIBLE fact gleaned from google, "The IRS can seize your assets and accounts and force banks to disclose all
information about your accounts, so I would guess that forcing eBay to pony up any
records still on their system would not be a problem."
I say "possible" because newsgroups are not to be relied upon.
posted on November 5, 2002 01:15:30 PM new
I would say anyone who is not keeping records is in danger. The IRS makes people working part-time at McDonalds pay taxes so they will certainly make you.
As far as records go. I keep my mileage in a logbook I keep in my car.
When I buy something I put a tag on it as soon as I get back in the car with what I paid then record that when I get home with all my goodies. The same with auction payments. If it is a boxlot, I take the total number and divide by items in box.
I keep the tag on item until sold. I have to hope this is good enough because we all know you could not possibly get receipts for a fifty cent purchase at a garage sale!
At least I have a record of each item and I will be semi-prepared should I need it to back up my tax forms.
The only area I am having trouble with is my personal possessions (and I have a lot -- records, etc. saved over 40 years). I do not know how to value them and will have to come up with something before tax time. Any ideas?
posted on November 5, 2002 02:22:47 PM new
Ihula, do you have community collge nearby or a vo=tech school. I learned all about DOS back in the 80's at Wake Tech in Raleigh NC. Went 1 day a week for 2 hrs. from 7AM to 9AM, Learned Excell the same way in Santa Barbara. Also ge Excel for Dummies. A great help. I keep all of my purchases, my mileage, my sales & all other expenses in categories. I have one just for postage, & one for FedEx Ground. Without going back & looking, I must have about 10 categories of income & expenses.
posted on November 5, 2002 03:00:38 PM new
I'm in a major city, so we do have a lot of classes for "adult education". In fact I think I can take access or excel through my "real job" and get paid for taking it if I can justify using it in my work life.
posted on November 5, 2002 04:12:08 PM new
I do eBay part time but do me on average $5k per month through my ebay bank account, I make sure I keep very accurate records and I do report the income on taxes. Having this as a home business allows for a lot of tax flexibility.
posted on November 5, 2002 09:59:54 PM new
Trai, you're a git, these two pages are EXTREMELY informative for the newbie wanting to get an overview of what they should know about income from auctions.
http://www.samizdat.com/auc14.html
http://www.samizdat.com/auc13.html
As for all you others, OF F*&#&^$G COURSE the banks have records of your income, and it is easy enough to say what is employment income, and what is not income from a "real" legitimate employment. You self employed folks, you obviously keep records of the money you make, DUH. But, i'm sure I read that banks specifically keep income info in order to protect themselves against something or the other. I have posted in a tax group to see if they can enlighten me on this tidbit of information, so we will see.
Are you trying to tell me that if you have never paid taxes on the profits you have made online, that you won't be shaken in your boots should the IRS come knockin on your banks door wanting to audit you? Yes, where DID all that money from Paypal come from, Hmmmm?
posted on November 5, 2002 10:24:43 PM new
saffy, there are a lot of people on this board who are accountants, or who possess a background in finance or business. Anyone of these individuals will tell you that deposits into a bank account do not automatically equate to being income. Banks cannot possibly determine the nature of a deposit, even if the deposit is over $10,000.
posted on November 5, 2002 11:01:11 PM newTrai, you're a git, these two pages are EXTREMELY informative for the newbie wanting to get an overview of what they should know about income from auctions.
saffy, you admitted that you are a newbie to online auctions and I see that you are a newbie here so of course it may be informative to you and some others.
Having said that, there was still no reason for you to call another poster a "git".
As for all you others, OF F*&#&^$G COURSE the banks have records of your income, and it is easy enough to say what is employment income.
For some reason you seem slightly upset with some of us when we question how you know this because we hadn't heard of it.
posted on November 6, 2002 12:04:50 AM new
Actually, the paperwork is computer files, and I have it set up with databases so it is actually quite easy to keep track of. Also, as others have pointed out, your comment that banks keep track of non work related income is just plain ridiculous. If you believe that, then you probably also believe that pretty soon, we will have to pay a 5¢ per message tax to receive email! That's true too, because I heard about it via email.
posted on November 6, 2002 01:58:45 AM new
Kiara, did you do any of that introspection I asked you to do? I HATE nitpicking, but didn't I say it "Here are some articles on the subject, very informative for the >>>>>>>>>>NEWBIES<<<<<<<<.
http://www.samizdat.com/auc14.html
http://www.samizdat.com/auc13.html "
Do i quicken your blood Kiara? S'up girl? I don't swing that way. Unless you got more info on taxes for me, chill out.
Well, for those of you still interested, what I gathered from a discussion on googles tax group is that banks will keep track of interest and report a 1099 form if it exceeds a certain amount. Also, you must deal with 1099 forms if you do an exchange of 600$+ one lump sum.
I don't know the details, i'm no accountant, but because I don't know, i'm not going to f with it. The IRS is one master I will gladly bow down to.
posted on November 6, 2002 04:29:52 AM new
of course banks keep track of interest!
Did you just realize this or have you never received a 1099?
okay, for those lurking and believing saffy's nonsense.
oversimplification example:
think of a garage sale.
you sell all your stuff.
yippee
run to the bank with $4000 cash in your hot little hands.
NO ONE CARES AT THE BANK when you deposit it.
what about taxes?
THOSE ARE NOT PROFITS in your hot little hands.
More than likely, everything you sell at a garage sale is at a loss.
*The law says to Pay Uncle Sam on your income. Keep good enough records to make sure to claim your expenses*
posted on November 6, 2002 08:22:57 AM newKiara, did you do any of that introspection I asked you to do?
I must have missed that request as I don't see where you asked me to do anything. BTW, did you read the Community Guidelines here?
Do i quicken your blood Kiara? S'up girl? I don't swing that way.
I'm not sure what you mean by that comment? Is this sexual now? If so, I like mature guys.
I find this mildly amusing how you came in here only a couple of days ago because you got your newbie little azz booted off ebay. Then you became rude and called fellow posters "retards" and "gits" when they commented on a thread or tried to help you.
You pepper your comments with juvenile cussing and street lingo and we are supposed to take your comments seriously?
posted on November 6, 2002 01:23:02 PM new
Banks keep income information that they receive from tax returns when an applicant applies for credit.
Looking for a loan?
a mortgage?
provide verifiable income, through tax returns or paystubs.
Other than that, banks have a responsibility to report 'suspicious activity' on an account.
'Suspicious activity' has to do primarily with cash transactions that may be money laundering, filtering money in/out of the US, fraudulent business activity, etc.
Bank officers do NOT pre-occupy themselves with IRS cop.
Saffy or stuffy or daffy or fluffy or whoever, I urge you to find something better to do with your new found "extra time".
Your suspension is making you quite a burden here at AW.
Remember your p's & q's.
Insulting posters, spewing out arrogance, and spreading misinformation can easily be interpreted as *does not play well with others*
Play nice or move on.
posted on November 6, 2002 04:55:51 PM new
Kiara, for the life of me, I will never understand people like you. I'm so sorry, but if you start a flame war, and than start crying about posting guidelines when things get to your disliking, than I would think you're just a ...GIT!
posted on November 6, 2002 05:23:56 PM new
saffy, you are!
in this thread alone:
saffy says:
the banks keep track of non-work related income
false
saffy stutters:
As for the info about banks keeping track of work money, let me look a little furthur
no needle in this haystack no matter how hard you look you won't find what doesn't exist
saffy stammers:
I'm still looking for the information about banks keeping track of non-work related dough that enters your account
you must've made it up or heard it from someone who made it up. Look all you want ~ you've got all that time now that you're suspended
saffy stumbles:
banks have records of your income, and it is easy enough to say what is employment income
you're kidding, right?
saffy says:
i'm sure I read that banks specifically keep income info in order to protect themselves against something or the other.
Banks primarily protect themselves against fraudulent activity (such as kiting money) or funds that may be seized. Forfeiture of funds would cost the bank money. Shareholders do not like bad business decisions. Government involvement is primarily with regard to cash transactions of $10,000+. In addition, for many reasons, Due Diligence is required prior to accepting large domestic wire transfers as well as most international wire transfers. Excessive wire activity is suspicious for obvious reasons.
Depositing piddly money orders is NOT a concern to bank representatives with regard to unclaimed income. Believe me, there are much bigger fish out there. How do you think the money got into the US to fund 9-11. Who aacepted those funds into the US and how did they get here?
more info for those who are still readingIn most states, BY LAW, business checking accounts can not accrue interest. Transactional funds belong in a checking acct while investment funds can bear interest. IF you are depositing corporate funds into a personal checking account, it should NOT be an interest bearing account. The reason the bank has any interest in your deposits is if you are depositing transactional corporate funds into an interest bearing acct because the bank can be held liable.
In other words, no one at the bank gives a ratsazz if you pay taxes on your eBay sales.
*sheesh*
more information than anyone could need
*maybe someone learned something today*
posted on November 6, 2002 08:18:47 PM new
Saffy I am curious, What is a Git????? please define that. I have seen that many times from you and I have no idea if it is complimentary or otherwise.....Thanks. I gather you are not in the U.S. What Country are you posting from? Thank you very much.
