How would I go about paying taxes on earnings from street sales (art)? I earn enough that keeping it cash would not be safe. I would like to put it in the bank but, would like to avoid legal issues. I only handle cash no receipts.
**I am in CA
Put it on a schedule C, put the fucking money in a bank account
/thread
Put it on Schedule “Tell the IRS To Go Fuck Themselves” and put it in a safety deposit box.
[quote]countingbeans wrote:
Put it on a schedule C, put the fucking money in a bank account
/thread[/quote]
Counter of Beans,
How long typically can a Sched C business go without turning a profit without raising flags? (Assume Sched C activity is not primary income)?
[quote]SteelyD wrote:
[quote]countingbeans wrote:
Put it on a schedule C, put the fucking money in a bank account
/thread[/quote]
Counter of Beans,
How long typically can a Sched C business go without turning a profit without raising flags? (Assume Sched C activity is not primary income)?[/quote]
Depends…
Too little revenue and you raise “hobby loss” eyebrows, and too much revenue with large loss carry forwards and you’ll get looked at pretty quick. (I’d say 3-5 years.)
This is 100% opinion and educated guesses, but things that will matter are:
- Is it the primary source of income for the family (or individual if filing single.)
- Is it the spouse’s Sch C and the taxpayer has a huge W2? (This is lower the flags a little bit, as the situation makes sense.)
- Is the Sch C an extension of the main occupation? IE: I’m a CPA, that is what is listed on my occupation line. If I was to run a side business doing a couple dozen tax returns and the Sch C is just my side piece I’m less likely to get hassled, but I’m less likely to get hassled because I’m a CPA too.
In short, I really can’t give a concrete answer but it depends on a few things. A Real Estate professional who is showing 3 or 4 years of 70-130k losses, and not paying any self employment taxes on the commissions is going to get audited, without question, eventually. Someone taking losses for their hobby of selling wood carvings when their main job is a electrician, may not get audited if the losses are 1.5k for awhile, but end of the day, they are breaking rules.
[quote]Luka24 wrote:
How would I go about paying taxes on earnings from street sales (art)? I earn enough that keeping it cash would not be safe. I would like to put it in the bank but, would like to avoid legal issues. I only handle cash no receipts.
**I am in CA
[/quote]
Curious, what kind of art do you sell? Do you make the art yourself?
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
…and the plot thickens
[quote]polo77j wrote:
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
…and the plot thickens [/quote]
yea like a certain Power lifter who was recently patted on the back by Ed Coan.
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
…and the plot thickens [/quote]
yea like a certain Power lifter who was recently patted on the back by Ed Coan. [/quote]
Noted … so you’re saying I should give him more shit … roger that 
[quote]polo77j wrote:
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
…and the plot thickens [/quote]
yea like a certain Power lifter who was recently patted on the back by Ed Coan. [/quote]
Noted … so you’re saying I should give him more shit … roger that :)[/quote]
Well of course.
Carry on
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
Why would said powerlifter not just post under his still valid account.
[quote]Testy1 wrote:
[quote]Derek542 wrote:
[quote]polo77j wrote:
[quote]Knurled wrote:
depends - if its your primary source of income I would start sending the goverment estimated tax payments so you dont get hit with a big tax bill (and possibly penalty) at the end of hte year. See below website for more details
if its a part time job and the $s arent significant, you are probably under the radar.[/quote]
Dude, stay current please lol[/quote]
I get a feeling this is someone we know Polo[/quote]
Why would said powerlifter not just post under his still valid account.
[/quote]
He has in the past created a Toll account just to rile some people up here.
You are old and forget these things.
If you have a main gig that you normally pay taxes through, open a side business as a DBA. I’ve been in a side business (machine shop) for around 25 years, file a 100% legit tax return as well. I keep receipts for anything business related, separate bank account (a NY state requirement). I play my tax return on the conservative side for deductions and have had loss years.
For having a regular job and doing art on the side, since you already have a legit source of income, you can get away (not legally though…) with putting the cash in your pocket. If you sell at craft fairs, most will want you to have a TIN (tax identification number) before you can participate.
You may want to talk to a CPA before doing anything else.