DIY Taxtime estimate thread?

Live forum: http://forum.freeipodguide.com/viewtopic.php?t=41069

nobody2000

11-06-2006 15:56:19

I got my TV May 31 from E-RG (I-Deal) and not a $2000 check. I was wondering if it would be helpful if we made a thread for people to look up the approximate costs of these items for info during taxes.

This info can be used so $$wise people can budget aside a few hundred bux for big ticket items come tax time. Also, it can be useful in the case if one of these DIYs puts a false amount come income tax time.

What does everyone think?
I called up pcconnections.com the company who shipped the TV, they pulled up my account (they had to ship it, so an account with my name and zip is in the computer) and told me this

E-Research Group.com 42" Plasma TV, Panasonic TH-42PWD8UK
$1600 for the TV
$125 for shipping.

So I'm looking to pay taxes on $1725. I called up the IRS and they said that this IS considered "Fair Market Price" and is the amount I should expect to pay taxes based on. Anyone else care to contribute? I'll compile a list if it helps. (Note...gift cards and checks are obvious and won't be included in a list).

ghondi

11-06-2006 20:04:19

They may be obvious for you, but I didn't pay taxes when I was 18....didn't make enough to even claim.(Tax attorney told me that)

But I filed my first time last year.

Anyways, whats the % they "take" from checks or GC's? Like is it 6% on the dollar or????

Thanx.

notoriusd

11-06-2006 20:17:20

This is a great idea. i'm getting a 52" toshiba from yourbestrewards this week adn I'll try to get this info from the delivery company and post it.

junkie06

11-06-2006 20:19:03

how much money (min) do you have to make to file taxes

dmorris68

11-06-2006 20:28:09

[quoted0ccb6b76e="ghondi"]Anyways, whats the % they "take" from checks or GC's? Like is it 6% on the dollar or????[/quoted0ccb6b76e]
All of these tax questions are discussed many times over on the forums here. Search is your friend. ;)

There is no fixed percentage that anybody can give you. Like all income taxes, it depends on each persons' tax situation and AGI (adjusted gross income, which is gross income minus deductions). Your tax bracket determines the percentages that you pay.

The value of your gift will be added to your income and should not significantly impact your tax situation unless you've gone freebie-crazy like some folks and got $20K or more in free stuff.

freedesktoppc

11-06-2006 21:26:09

You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.

slockhart

11-06-2006 23:48:19

[quotebf64227289="freedesktoppc"]You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.[/quotebf64227289]
So what is the minimum threshold ?? $20k or what ??

shaggz

12-06-2006 05:42:56

Couldn't we claim the total cost of the trial offers as an expense, to cut down the total Value of the Gift+shipping?

For instance on ConsumerSavingsCenter, after ordering trials, plus any shipments back if i decided to cancel = $125-130 .. so I would think that I could just scratch off the shipping cost since that was about the same as I had to spend in expenses. Yes/No ?

ghondi

12-06-2006 07:35:13

[quote64596fc97a="freedesktoppc"]You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.[/quote64596fc97a]

Not true. My tax guy told me it wouldn't even be worth my time...I didn't even take home $1000 because well...I hoped from one to another job...and then quit...so..lol....and I also haveny added money/income from ebay or freebies when I just filed bacl in april...

Do you have to file ebay income? 'Freebie' income, under $600? Does that include money getting paid to be a refferal?

dmorris68

12-06-2006 07:46:34

[quotecf25edd899="ghondi"]Do you have to file ebay income? 'Freebie' income, under $600? Does that include money getting paid to be a refferal?[/quotecf25edd899]
Technically/legally, yes you are required to claim everything. That doesn't mean you'll be taxed on it, depending on your circumstances, but you're required by law to report it. Whether you do or not, is on you.

As for eBay income, it depends. If you're just selling junk laying around the house and not making a business of it, then no you don't have to report that as income. If however you're running an eBay business, have an eBay store, and/or support yourself via eBay sales, then yes that's considered self-employment income. You not only have to pay income taxes on it, but also OASDI and Medicare taxes as well.

ghondi

12-06-2006 10:03:49

Thanx Dmorris. I generally sell random shit I find. I get alot of junk from people I know for free and sell that, but with only 25feedback(100% +) I don't think I would qualify for a business...lol

freedesktoppc

12-06-2006 10:32:22

[quote0c0f7e3a15="ghondi"][quote0c0f7e3a15="freedesktoppc"]You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.[/quote0c0f7e3a15]

Not true. My tax guy told me it wouldn't even be worth my time...I didn't even take home $1000 because well...I hoped from one to another job...and then quit...so..lol....and I also haveny added money/income from ebay or freebies when I just filed bacl in april...

Do you have to file ebay income? 'Freebie' income, under $600? Does that include money getting paid to be a refferal?[/quote0c0f7e3a15]

well then your tax guy is wrong, just hope you don't get audited. I believe the minimum threshold is 8k, might be completely off on that though.

mikeman565

12-06-2006 11:39:47

i believe its 18 k.

Wolfeman

12-06-2006 11:50:55

You have to file no matter what. Any income you make has to be reported. eBay income, freebies, whatever. Now if you choose to do this or not, thats your choice. I wrote a paper in college how its actually worth the risk to cheat on your taxes because unless you are really retarded, audits aren't as bad or expensive as people think. Their are different levels of auditing. IF you get full audit, you are fucked but its like 1% of audits get a full audit. That being said, when tax time rolls around I'll be doing some clever write offs and making sure I get the rock bottom FMV for all these gifts )

ghondi

12-06-2006 13:15:10

[quote909d6d65b1="freedesktoppc"][quote909d6d65b1="ghondi"][quote909d6d65b1="freedesktoppc"]You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.[/quote909d6d65b1]

Not true. My tax guy told me it wouldn't even be worth my time...I didn't even take home $1000 because well...I hoped from one to another job...and then quit...so..lol....and I also haveny added money/income from ebay or freebies when I just filed bacl in april...

Do you have to file ebay income? 'Freebie' income, under $600? Does that include money getting paid to be a refferal?[/quote909d6d65b1]

well then your tax guy is wrong, just hope you don't get audited. I believe the minimum threshold is 8k, might be completely off on that though.[/quote909d6d65b1]

Actually your wrong. Lol. I didn't make enough to claim. Please check your facts.

Wolfeman

12-06-2006 13:20:19

If you are getting taxes taken out of your checks but not filing that is a no-no. If you are getting paid under the table, you are probably ok...

doylnea

12-06-2006 13:36:37

[quote5fa9fb7d44="ghondi"][quote5fa9fb7d44="freedesktoppc"][quote5fa9fb7d44="ghondi"][quote5fa9fb7d44="freedesktoppc"]You have to file no matter what, but you might not have to pay anything if you are under the minimum threshold.[/quote5fa9fb7d44]

Not true. My tax guy told me it wouldn't even be worth my time...I didn't even take home $1000 because well...I hoped from one to another job...and then quit...so..lol....and I also haveny added money/income from ebay or freebies when I just filed bacl in april...

Do you have to file ebay income? 'Freebie' income, under $600? Does that include money getting paid to be a refferal?[/quote5fa9fb7d44]

well then your tax guy is wrong, just hope you don't get audited. I believe the minimum threshold is 8k, might be completely off on that though.[/quote5fa9fb7d44]

Actually your wrong. Lol. I didn't make enough to claim. Please check your facts.[/quote5fa9fb7d44]

Unless your AGI was less than $5, you made enough money to pay taxes...see the pdf if you care
http//www.irs.gov/pub/irs-pdf/i1040tt.pdf

However, what you're likely trying to say, is that after deductions and credits, your AGI was less than zero, or zero, and as such, you didn't have any tax due.

icojones

12-06-2006 19:33:58

I still can not understand why people insist on giving tax advice when they are not qualified to do so. This isn't like giving tips on how to get freebies -- if you get this wrong you can get in trouble.

If anyone is wondering whether or not they have to file a tax return, I'd suggest the following link

http//www.irs.gov/individuals/article/0,,id=96623,00.html

The tax table linked above has very little to do with whether or not you have to file.

junkie06

12-06-2006 19:38:26

Simple speak to your parents or someone who is certified

Wolfeman

12-06-2006 19:39:27

I hope people don't take what anyone says without consulting a professional but advice can help because they know what to ask. I do have a BA in Business Economics with a minor in Accounting...

freedesktoppc

12-06-2006 19:49:16

[quote8bc245c1dc="icojones"]I still can not understand why people insist on giving tax advice when they are not qualified to do so. This isn't like giving tips on how to get freebies -- if you get this wrong you can get in trouble.

If anyone is wondering whether or not they have to file a tax return, I'd suggest the following link

http//www.irs.gov/individuals/article/0,,id=96623,00.html

The tax table linked above has very little to do with whether or not you have to file.[/quote8bc245c1dc]
that faq is referring to someone who has no regular income, but has some kind of a special circumstance that he may have to file for. The tax table has everything to do with it. You make any money, you file, thats the bottom line. If you make no money, but you have special circumstances, you refer to the faq.

icojones

12-06-2006 21:18:42

[quotef4576e0b38="freedesktoppc"][quotef4576e0b38="icojones"]I still can not understand why people insist on giving tax advice when they are not qualified to do so. This isn't like giving tips on how to get freebies -- if you get this wrong you can get in trouble.

If anyone is wondering whether or not they have to file a tax return, I'd suggest the following link

http//www.irs.gov/individuals/article/0,,id=96623,00.html

The tax table linked above has very little to do with whether or not you have to file.[/quotef4576e0b38]
that faq is referring to someone who has no regular income, but has some kind of a special circumstance that he may have to file for. The tax table has everything to do with it. You make any money, you file, thats the bottom line. If you make no money, but you have special circumstances, you refer to the faq.[/quotef4576e0b38]

You are so wrong, that I have to assume that you are intentionally trying to mislead people. Why else would you state as fact what you do not know to be true?

If you are under 65 and not being claimed as a dependent, you did not have to file a 2005 return if your gross income is less than $8200.

If you are being claimed as a dependent (as most college students are), you did not have to file if your earned income was less than $4250 AND your unearned income was less than $800. If you don't know the difference between earned and unearned income, all the more reason to check with a tax accountant.

Check out table 2 in this IRS publication #501

http//www.irs.gov/pub/irs-pdf/p501.pdf

There are other complications, but none that anyone here is likely to encounter -- but of course you should not take my word for it, because even though I have a master's degree in accounting, it is not a degree in tax accounting (which is as different from the financial accounting most people take in college as calculus is from geometry).

nobody2000

12-06-2006 21:46:45

Can we get this forum back on track? If you have a big ticket W-9 requiring item (like a TV, Vespa, Pool table, etc) tell us what it's worth...help out the community. By worth, I mean fair market value AKA what did the company that sold it sell it for? What did shipping cost? A lot of ppl on this board DO have other jobs and DO have to file, and being honest on your taxes is a smart thing to do...this thread is to help those who are looking to get big ticket items plan for the hit on their budget come April 15.

And if you don't file taxes for anything you had to submit a w9 for, you're probably shooting your foot...

nobody2000

12-06-2006 21:47:54

Also...I'm not looking to post percentages here...Percentages will change based on the rest of your income. I just want values so people can make a good estimate as to what they might have to pay.

tylerc

12-06-2006 23:58:16

My dad is a CPA, make a list of questions (be specific please) and I can ask him.

icojones

13-06-2006 03:33:49

[quote4985790278="nobody2000"]Can we get this forum back on track? If you have a big ticket W-9 requiring item (like a TV, Vespa, Pool table, etc) tell us what it's worth...help out the community. By worth, I mean fair market value AKA what did the company that sold it sell it for? What did shipping cost? A lot of ppl on this board DO have other jobs and DO have to file, and being honest on your taxes is a smart thing to do...this thread is to help those who are looking to get big ticket items plan for the hit on their budget come April 15.

And if you don't file taxes for anything you had to submit a w9 for, you're probably shooting your foot...[/quote4985790278]

My suggestion is to check out and print up froogle and the other pricing websites when you receive the gift and once again when you file your taxes. Print up and verage the few lowest prices to get a reasonable market value. As long as you have legit paperwork in the event of an audit (very unlikely), the worst you'd have to pay is the amount they think you are short and a very minor interest charge.

And, as long as you come in under the threshholds in Form 501, you do not need to file a tax return regardless of whether or not you filed a W-9. [b4985790278]Please stop making shit up.[/b4985790278] There is a difference between what you think makes sense and what is the truth.

nobody2000

13-06-2006 10:56:41

[quote7fae6fba86="icojones"][quote7fae6fba86="nobody2000"]Can we get this forum back on track? If you have a big ticket W-9 requiring item (like a TV, Vespa, Pool table, etc) tell us what it's worth...help out the community. By worth, I mean fair market value AKA what did the company that sold it sell it for? What did shipping cost? A lot of ppl on this board DO have other jobs and DO have to file, and being honest on your taxes is a smart thing to do...this thread is to help those who are looking to get big ticket items plan for the hit on their budget come April 15.

And if you don't file taxes for anything you had to submit a w9 for, you're probably shooting your foot...[/quote7fae6fba86]

My suggestion is to check out and print up froogle and the other pricing websites when you receive the gift and once again when you file your taxes. Print up and verage the few lowest prices to get a reasonable market value. As long as you have legit paperwork in the event of an audit (very unlikely), the worst you'd have to pay is the amount they think you are short and a very minor interest charge.

And, as long as you come in under the threshholds in Form 501, you do not need to file a tax return regardless of whether or not you filed a W-9. [b7fae6fba86]Please stop making shit up.[/b7fae6fba86] There is a difference between what you think makes sense and what is the truth.[/quote7fae6fba86]



i don't know what I'm making up there, but it's better to be cautious about everything you do with taxes. I have to file regardless because i have investments and other sources of incomes (I like freebies and all, but doing them and trading won't support me, and probably isn't a good support for many).

The froogle thing won't work. I discussed this with a gentlemen on the phone when I called the IRS. I assume he's a CPA because I was forwarded a couple times to him and he provided me with tax advice. He said to me when I asked if I can just show proof that I can get the same item from a reasonable dealer NOT on sale for less than what pcconnections.com had it, he said that "Fair Market Value" in this case means what the giver paid for it. It is my choice, however, not to accept a gift like that, which would mean I pay no taxes, but of course, get no gift.

So the point of this thread is this so that I can compile a list for EVERYONE of the REAL price + shipping of each gift available so that they can make a good estimate for what they should pay for taxes. This thread has turned into a discussion about why people do/don't need to pay taxes and is a few steps away from a bash fest. Please get it on track. This is supposed to be me organizing something for everyone, and it's become something that isn't that. If we can post the REAL FAIR MARKET price of all these items, this will be a valuable resource. So please, let's get this on track.

freedesktoppc

13-06-2006 20:27:55

The real FMV will be on the 1099, so I don't really see the point, because if you are going to be readjusting it to Pcconnection, you might as well readjust it to a froogle or w/e which you said you don't wanna do.

nobody2000

13-06-2006 22:54:54

I want to set this list up for 2 reasons

1.) To give people an accurate estimate of what the burden will be.
2.) To give people knowledge so that if on the 1099 it says the FMV stands at $2000 when it's really $1750, that's a lie according to tax advice I got straight from the IRS, and one should be able to dispute it.

It seems like too many people either aren't concerned about this tax shit or just have extra money to throw around. Either way, I think allowing people to know EXACTLY what the price for THAT unit is, makes it easier for people to prepare for tax time. It's as if people are fighting me over something stupid. I just wanted to compile a list for the board so everyone can say "oh i did this site, so I should expect to see a $XXXX increase in my reported income according to a 1099 (or whatever) and that I'll need to probably set aside $XXX to pay in.

What's so hard about it? Keep it on track, stop fighting me, just post if you are submitting a value, or have a pertinent question. I explained the purpose of this thread, and it's not that ridiculous nor is it complicated.

doylnea

14-06-2006 06:14:12

The reason no one cares is because
a) 90% if not more are under 18, and their parents handle their taxes
b) it's June - 10 months before taxes are due
c) it's not as fun to talk about tax due and ruin the illusion of free stuff

nobody2000

14-06-2006 14:15:48

well it's not a matter of not caring, it's a matter of people going off on tangents about god knows what when all I wanna do is set up a resource that we can keep building on.

I'm just trying to be realistic

aguy

14-06-2006 19:41:58

uhh do u think i could write off my macbook pro as needed for school?

Wolfeman

14-06-2006 19:42:42

SURE!

nobody2000

14-06-2006 21:47:29

[quote9b359f6d36="aguy"]uhh do u think i could write off my macbook pro as needed for school?[/quote9b359f6d36]

I'm bet that won't be a problem for you