Chalk up another point for Canada!
You have a misconception of how taxes work. You pay taxes on net profits. A 17K check that gets deposited means nothing to a bank. It could be a loan, a gift, earnings, whatever. The only thing that is relevant is that you pay tax on the net profit of what you earned. If it was an offshore gambling check for 17K, and you lost 14K at a Vegas craps table, you would have a net profit of 3K that would be taxable.themanej2001 said:
Um Illini no I agree I am not saying I am going to pay the taxes myself. I just don't want to report it because I don't want to move into the next tax bracket because it will be more expensive for everyone. I am not worried that i am oging to have to pay this... I am not going to be the one to pay...
But can I completely put this out of my hands by third partying the check? Like will I be elimanated from the equation or since my name is still on the check will I still have to pay taxes on it..
But can I completely put this out of my hands by third partying the check? Like will I be elimanated from the equation or since my name is still on the check will I still have to pay taxes on it..
Chances are slim that anybody will ever audit this, so don't worry so much. But if audited, it's all gonna go back to the paper trail. If you third partied the check to him, because it was his money, then you could prove it. You could also prove it by depositing it and writing a personal check to him. 6 one way, half a dozen the other. Makes no difference.themanej2001 said:
Get away with what? Is it your money or is it his money? That will answer who pays the taxes on it. Very simple. Don't feel guilty not paying tax on the money, if it isn't yours. Your worrying is unnecessary. If it's all his money, just deposit it, write him a check, and it's on him to report it. You will have washed your hands of it, once you write him the check, if it is indeed his money.themanej2001 said:
Yeah that is what I thought... So i am not worried about that but it isn't worth the risk.. I guess I will see how much money I have at the end of the year and see if I want to file it...
But if he can not stop payment on this check then I have a 17k check that I have to cash...
If I just cashed it somewhere that cashed checks of that size would that even be reported if I just cashed it at somewhere that isn't a bank would there be record of it?
But if he can not stop payment on this check then I have a 17k check that I have to cash...
If I just cashed it somewhere that cashed checks of that size would that even be reported if I just cashed it at somewhere that isn't a bank would there be record of it?
Yeah but my mom works in accounting and she told me that if it is deposited into my account then it will red flag and even if I give it to him and it is his money I still have to pay tax on it. She also said that if he doesn't pay taxes, which I am sure he probably doesn't, and it gets audited and I say it was his money but he doesn't pay taxes then he is fucked... that is the problem
If you don't trust this guy, then you don't want to be in business with him. I assume that he is bankrolling you and you are making bets and splitting profits? I look at it this way. In the very slim chance that you are audited, and they catch this paper trail, he is gonna be the one that is fucked. If he tries to lie and say that you gave that money to him, is a tax man gonna believe that a 19 year old college student just gave him a 16K gift? Hell, no. It will be considered income.
Yeah I know but I dont even want it to come down to that. So if the check stops payment and we get two seperate checks for under 10k and I just third party it we should be OK right? Then it won't be red flagged if I have two seperate people deposit it right?
I just don't feel like flying out to Vegas.
Also I took my cut out slowly I didn't take it all out at once like this... because I took it out and deposited in small sums so that this wouldn't be a problem
I just don't feel like flying out to Vegas.
Also I took my cut out slowly I didn't take it all out at once like this... because I took it out and deposited in small sums so that this wouldn't be a problem
