What would you do?

[themanej2001]

No I will get all the money back except social security that I know for sure that is not what worries me... I just don't want to be double taxed because of the transfer

 

[themanej2001]

So you think that I would be double taxed or not?

Also I can't believe this sort of mistake was made by my partner.... As he should of known the 10k rule but that is ok...

I think I will just pay the tax...

What do you think the % will be?

 

[Brooklynbomber]

No I'm not check kiting... I am waiting for the funds to clear before the transfer

Sorry, misread your original post.

 

[MoneyManager]

Red flags or not, you have until April 2008 to figure this out --- the tax debt --- so relax, no need for imediate worry or action.

Nice start on the tax year 2007 but gambling losses are always possible to offset your gain. By years end there may be no taxes to pay.

Deposit the check and act like you are a humble trust fund baby. It's not their business it's your's.

Don't act suspicous, act like you are considering buying the bank to turn it into a bowling alley.

Find a good looking teller --- she/he may like wealthy people. A possible unexpected bonus!

 

[themanej2001]

Ok well I live in a neighborhood full of trust fund babies so that shouldn't be a problem. I just want to figure this out because if I get a job I could go over the next tax bracket with a job and more withdrawls. IDK what to do but I just hope I won't be double taxed.

 

[themanej2001]

If I third party the check will I have to pay the tax on it or not?

 

[Illini]

Its going to be flagged and you don't pay taxes on it until you report your taxes next year. If this is your only income keep great records of where the money has come from as you will be audited.

Why would he be audited?

 

[Illini]

Ok well I live in a neighborhood full of trust fund babies so that shouldn't be a problem. I just want to figure this out because if I get a job I could go over the next tax bracket with a job and more withdrawls. IDK what to do but I just hope I won't be double taxed.

It's not gonna get double taxed, unless you guys act like morons and report double the amount you won. A check going in and out of a bank account means nothing. Nobody withholds anything, it's just a payment from one person to another to settle a debt. It could be for work performed, or it could be a loan for that matter. Just keep win/loss record and net profit for each person separately, and report it as such. If you are paying taxes on your winnings, the check could be for one million, and you have nothing to worry about.

 

[themanej2001]

Ok so as long as I pay taxes on it I will be OK? Because if I pay Taxes on it and transfer the money to him and he doesn't pay taxes on it nothing will happen to me right? I mean maybe that is selfish but i am just looking out for myself right now you know?

 

[themanej2001]

and why would i be audited?

 

[Illini]

Ok so as long as I pay taxes on it I will be OK? Because if I pay Taxes on it and transfer the money to him and he doesn't pay taxes on it nothing will happen to me right? I mean maybe that is selfish but i am just looking out for myself right now you know?

You each should pay your own taxes on the portion that is yours. I don't know what you have cooking if you are paying tax on 17K and then writing him a check for 16K. Whatever his net winnings are is what he should pay taxes on, and the same goes for you.

 

[Illini]

and why would i be audited?

The chances of being audited are very slim.

 

[gskiman]

Red flags or not, you have until April 2008 to figure this out --- the tax debt --- so relax, no need for imediate worry or action.

Nice start on the tax year 2007 but gambling losses are always possible to offset your gain. By years end there may be no taxes to pay.

Deposit the check and act like you are a humble trust fund baby. It's not their business it's your's.

Don't act suspicous, act like you are considering buying the bank to turn it into a bowling alley.

Find a good looking teller --- she/he may like wealthy people. A possible unexpected bonus!

:laughingb

 

[themanej2001]

Well I have never taken out an amount of this size. Usually I don't take money out like this and I have taken out mine. He paniced and wanted it out but the account was in my name so the check was made to me. I am sure he will pay me back for the taxes I will pay on it. But I am not trying to get into trouble with the IRS at the age of 19... turn 20 in 3 weeks... I am not trying to commit Tax Fraud

 

[themanej2001]

That was my question why would i be audited at the age of 19 and for 17k... that is nothing to the gov't

 

[Illini]

Well I have never taken out an amount of this size. Usually I don't take money out like this and I have taken out mine. He paniced and wanted it out but the account was in my name so the check was made to me. I am sure he will pay me back for the taxes I will pay on it. But I am not trying to get into trouble with the IRS at the age of 19... turn 20 in 3 weeks... I am not trying to commit Tax Fraud

Fuck him. Don't pay taxes on money that you haven't earned. Cut him his portion, and it's on him to pay his own taxes. That's the proper way to do it anyway.

 

[themanej2001]

IDK I have a feelin gi am just going to report this sum a the end of this year in my tax report. So there is no reason to try and get around it. I am not going to try and get out of payin gtaxes and start off on the wrong foot with the gov't

 

[themanej2001]

Yeah I feel you...

Last question If I third party the check will I have to pay taxes on it since it was in my name?

 

[viking611]

Fuck him. Don't pay taxes on money that you haven't earned. Cut him his portion, and it's on him to pay his own taxes. That's the proper way to do it anyway.

themanej2001 is a disgrace to bloom-normal! LOSER!!!

 

[Illini]

IDK I have a feelin gi am just going to report this sum a the end of this year in my tax report. So there is no reason to try and get around it. I am not going to try and get out of payin gtaxes and start off on the wrong foot with the gov't

It's not the proper way to do it, if this guy was your partner and these winnings are his. But if you want to pay taxes on it, and report it as your own income, just give him the net amount after taxes, and call it a gift. You will get screwed if you pay tax on 17K of income, and then give him 16K. That doesn't make any sense, and he should see that.