Don't forget to return or document any coins that you stole in 2021

Mizzou

Any owners of stolen property have two options this year, return the property to its rightful owner or document its value in your tax returns.

Stolen property and any income obtained from illegal activities are included under the category of "other income," according to the IRS.

“If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,” according to the IRS guidelines from 2021.

Likewise, any "found" property falls under similar guidelines; according to the IRS, if you find and keep property that doesn’t belong to you it’s taxable as well at its fair market value, "in the first year it’s your undisputed possession."

"Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity," said the IRS guidelines.

Steven59

Define "Stolen" compared to "Found" Wink, Wink............

cladking

@Mizzou said:
Any owners of stolen property have two options this year, return the property to its rightful owner or document its value in your tax returns.

Stolen property and any income obtained from illegal activities are included under the category of "other income," according to the IRS.

“If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,” according to the IRS guidelines from 2021.

Likewise, any "found" property falls under similar guidelines; according to the IRS, if you find and keep property that doesn’t belong to you it’s taxable as well at its fair market value, "in the first year it’s your undisputed possession."

"Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity," said the IRS guidelines.

The world has gone mad.

MsMorrisine

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

fastfreddie

@MsMorrisine said:

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

Yup, they don't care how you got your money so long as you pay tax on it.

smuglr

@MsMorrisine said:

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

And has been the case, much will continue to go unreported. If you're going to steal, you're not likely to be honest enough to report it.

moursund

"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

jmlanzaf

@moursund said:
"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

That's a wash sale.

DCW

"Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity," said the IRS guidelines.

Only our government can make a statement like this.

Absurd.

cladking

@moursund said:
"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

I think you've found a tax loophole.

Just transfer the property to its rightful owners as the ball starts dropping and take it back when it hits.

I bet this is for the big shots.

moursund

@jmlanzaf said:

@moursund said:
"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

That's a wash sale.

Yeah, do they have a "wash steal" rule? 😀

pursuitofliberty

@moursund said:

@jmlanzaf said:

@moursund said:
"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

That's a wash sale.

Yeah, do they have a "wash steal" rule? 😀

nah, it's a "steel wash"

popular with the younger set ... it's a fashion thing

Smudge

Taxes ARE stolen money.

gumby1234

One 1933 Double Eagle on its way back to its owner.

cladking

@MsMorrisine said:

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

Well, no.

These were business enterprises and kept books. They engaged in various illegal activities and had a payroll. But, as a rule, they were "honest" criminals at least insofar as they bought and sold contraband. The mobsters had so much power the government couldn't get convictions so they just used a different law. I suppose this has become precedent. Strange things happened in those days like stolen double eagles from the mint that were never reported. Repercussions from prohibition are still with us apparently. The mint can claim property was stolen without evidence or record there was even a theft.

I suppose that by reporting such income they made the government an accessory after the fact just like in cases where modern day thieves report "income". But in the 30's the prosecutors were aware of the crimes but could obtain no convictions. Today it seems highly improbable any DA's will be made aware of any theft so long as a cut is paid. Otherwise what criminal would turn himself in by reporting his crime? This is the absurdity. How can a thief make a dishonest buck if he risks real jail time by being forced to turn himself in. The ancients did it right; the thief was required to turn all ill gotten gain into a central clearing house where the owner could reclaim it for one third of the value. The thief got the 33% except a "handling fee" to support the clearing house. Every thief had to be registered or face death and did far better than the lousy 10% a modern day fence will pay. Everyone knew who the thieves were so could better protect themselves and were out only 33% if they let their guard down. Everyone came out ahead and crime was a learning experience with few practitioners.

There are some who claim that the mobsters who went legit after prohibition ended are still around. It might explain some of the absurdities.

The world has been getting crazier for many millennia but now it's at a breakneck pace.

sedulous

@cladking said:

@moursund said:
"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,”

Ha! I outsmarting them by returning the stolen property to its rightful owner on 31 December. Then stealing it again on 01 January! 🤭

I think you've found a tax loophole.

Just transfer the property to its rightful owners as the ball starts dropping and take it back when it hits.

I bet this is for the big shots.

They would have their eye on the ball and not even notice! funny

MarkInDavis

I can't keep my 64-D peace dollar without paying taxes? What do I report its value as? Uhh, I mean hypothetically, of course.

PerryHall

@Smudge said:
Taxes ARE stolen money.

....and inflation is the cruelest tax of all.

ricko

Oh my... the complexities of tax reporting. Well, I do not have illicit income, have not 'found' any treasure, have not sold anything this year.... So I guess the accountant will have another easy paycheck when doing my taxes again this year. Cheers, RickO

moursund

@MarkInDavis said:
I can't keep my 64-D peace dollar without paying taxes? What do I report its value as? Uhh, I mean hypothetically, of course.

Maybe you can just use a hacksaw, slice off a chunk of it, and send that to the IRS...

JBK

@MsMorrisine said:

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

Yes, Al Capone went down for tax evasion.

JBK

What if I fenced it already? And do I declare the retail value, legal resale value, or what the fence paid me?

Does the IRS have a helpline for questions on how to report taxes on ill-gotten gains?

Mizzou

I find it really hard to believe that these guidelines are added to the tax code this year, sounds to me like someone got caught with their hand in the cookie jar and trying to cover their ass.

jmlanzaf

@MarkInDavis said:
I can't keep my 64-D peace dollar without paying taxes? What do I report its value as? Uhh, I mean hypothetically, of course.

You're fine. Statute of limitations has expired.

jmlanzaf

@JBK said:

@MsMorrisine said:

@cladking said:

The world has gone mad.

I thought this was always the case

this was how they got some mobsters - tax evasion, right?

Yes, Al Capone went down for tax evasion.

He ignored the 1099 he got from PayPal.

SaorAlba

Just remember, with all the crimes of corruption, bootlegging, murder etc the only thing they could pin Al Capone with was tax evasion for not reporting all his illegally gained income.

moursund

@SaorAlba said:
Just remember, with all the crimes of corruption, bootlegging, murder etc the only thing they could pin Al Capone with was tax evasion for not reporting all his illegally gained income.

You mean the alleged crimes of corruption murder etc... 😉