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Tax Season 2012: Work No Longer Pays
- Thread starter FlagDUDE08
- Start date
Almington
Blood Boiling with Rage and Hate
Re: Tax Season 2012: Work No Longer Pays
Employee stock purchase programs are generally incentive stock options, which means that the employee does not have to pay any taxes on the stock until it is sold but the employer does not get to deduct the value on it's corporate income tax.
What Zuckerberg has are non-qualified stock options which require that he pay ordinary income tax on the difference between the option price and the market price and Facebook will get to deduct that difference on their corporate tax statement.
Employee stock purchase programs are generally incentive stock options, which means that the employee does not have to pay any taxes on the stock until it is sold but the employer does not get to deduct the value on it's corporate income tax.
What Zuckerberg has are non-qualified stock options which require that he pay ordinary income tax on the difference between the option price and the market price and Facebook will get to deduct that difference on their corporate tax statement.
dxmnkd316
Lucia Apologist
P
Priceless
Guest
Re: Tax Season 2012: Work No Longer Pays
Here's a hypothetical...
If I sell a few tickets on StubHub for above face value, is that profit taxable? What if I do that a few hundred times and clear a few thousand dollars.
Hypothetically.
Here's a hypothetical...
If I sell a few tickets on StubHub for above face value, is that profit taxable? What if I do that a few hundred times and clear a few thousand dollars.
Hypothetically.
dxmnkd316
Lucia Apologist
Re: Tax Season 2012: Work No Longer Pays
edit: "hypothetically" speaking, it is reported on Schedule C as income from a sole proprietorship, and you also can deduct related business expenses. "Hypothetically" speaking, we also are "supposed to" report barter in lieu of cash as well
edit: "hypothetically" speaking, it is reported on Schedule C as income from a sole proprietorship, and you also can deduct related business expenses. "Hypothetically" speaking, we also are "supposed to" report barter in lieu of cash as well
unofan
Well-known member
Re: Tax Season 2012: Work No Longer Pays
hypothetically, you should report it as regular income. Just as you should any gambling winnings, even if you don't win enough in a single bet to qualify for, or otherwise weren't given, a W2-G (because you won that money at a table game, for instance).
You can offset any gambling winnings with gambling losses, too, provided you keep a regular journal of gambling activity or otherwise have proof you lost what you claim you lost.
All hypothetically speaking, of course.
hypothetically, you should report it as regular income. Just as you should any gambling winnings, even if you don't win enough in a single bet to qualify for, or otherwise weren't given, a W2-G (because you won that money at a table game, for instance).
You can offset any gambling winnings with gambling losses, too, provided you keep a regular journal of gambling activity or otherwise have proof you lost what you claim you lost.
All hypothetically speaking, of course.
Last edited:
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
The stock broker decided they were going to wait until March 15th to send a 1099.
The stock broker decided they were going to wait until March 15th to send a 1099.
unofan
Well-known member
Re: Tax Season 2012: Work No Longer Pays
If you know what it's going to say from transaction confirmations or quarterly statements, you can prepare it all ahead of time and just use the 1099 to double check it.
The stock broker decided they were going to wait until March 15th to send a 1099.
If you know what it's going to say from transaction confirmations or quarterly statements, you can prepare it all ahead of time and just use the 1099 to double check it.
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
That's what I planned. Unfortunately, I need distribution factors for my royalties (such as depletion, taxes they pay, things like that) and the companies themselves don't even have those.
And, of course, they plan to keep changing on me, so 1040X may be in my future.
That's what I planned. Unfortunately, I need distribution factors for my royalties (such as depletion, taxes they pay, things like that) and the companies themselves don't even have those.
And, of course, they plan to keep changing on me, so 1040X may be in my future.
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
OK, question:
With the royalty trust stocks I own, I am able to calculate the depletion and get the royalty income down to a loss. However, for this activity, do I need to fill out Form 6198? I didn't do it last year (mostly because the amount of money I deducting was likely too small for the IRS to care, not to mention they did get a good-sized check in the mail though not enough to pay a penalty), but I wonder if I'm cheating by not filling it out. Worse comes to worse, I could always just not claim some of the depletion and have 0 income on royalties.
OK, question:
With the royalty trust stocks I own, I am able to calculate the depletion and get the royalty income down to a loss. However, for this activity, do I need to fill out Form 6198? I didn't do it last year (mostly because the amount of money I deducting was likely too small for the IRS to care, not to mention they did get a good-sized check in the mail though not enough to pay a penalty), but I wonder if I'm cheating by not filling it out. Worse comes to worse, I could always just not claim some of the depletion and have 0 income on royalties.
bottomdweller
Where my dogsies at?
Re: Tax Season 2012: Work No Longer Pays
If I were to fill out a W-9 to do design work for a company, and make a couple thousand in a year doing so, should I be expecting any type of tax document from said company to report the earnings? Or how do I go about paying taxes on said income?
If I were to fill out a W-9 to do design work for a company, and make a couple thousand in a year doing so, should I be expecting any type of tax document from said company to report the earnings? Or how do I go about paying taxes on said income?
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
Never mind, I figured it out, just by RTFM. I have to fill out Form 6198 if I have royalties for which I am not "at-risk". According to the instructions for Form 6198, oil/gas exploration constitutes an "at-risk" activity, so I'm good to not include it.
Never mind, I figured it out, just by RTFM. I have to fill out Form 6198 if I have royalties for which I am not "at-risk". According to the instructions for Form 6198, oil/gas exploration constitutes an "at-risk" activity, so I'm good to not include it.
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
If you filed a W-9, you should expect a W-2. According to the 1040 instructions:
Hopefully you kept tabs on your earnings so you are able to report accordingly.
If you filed a W-9, you should expect a W-2. According to the 1040 instructions:
Hopefully you kept tabs on your earnings so you are able to report accordingly.
Hammer
We'll be back.
Re: Tax Season 2012: Work No Longer Pays
Not quite. If you filled out a W-9, you should receive a 1099. If you filled out a W-4, you should get a W-2.
Not quite. If you filled out a W-9, you should receive a 1099. If you filled out a W-4, you should get a W-2.
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
Ah. I know with the 1099's, they were supposed to come out this past week (although for some dumb reason my stock broker decided to delay until next month). You should have them soon, bottomdweller. If not, you don't actually have to submit any forms, just report the income appropriately.
Ah. I know with the 1099's, they were supposed to come out this past week (although for some dumb reason my stock broker decided to delay until next month). You should have them soon, bottomdweller. If not, you don't actually have to submit any forms, just report the income appropriately.
FlagDUDE08
Banned
Re: Tax Season 2012: Work No Longer Pays
This is actually one advantage to using the casino comp cards (and obviously can be a disadvantage if you don't report). I did hear about a guy that got a W-2G for having one large day of winning. He then went to the casino, got the report on his losses, and wrote it off.
This is actually one advantage to using the casino comp cards (and obviously can be a disadvantage if you don't report). I did hear about a guy that got a W-2G for having one large day of winning. He then went to the casino, got the report on his losses, and wrote it off.
Hammer
We'll be back.
Re: Tax Season 2012: Work No Longer Pays
That's the most important part right there. Report the income you did receive, regardless of whether you got a form. So many people think that because they didn't get a W-2 or 1099, that income is not subject to tax. Now, if we're talking minimal amounts here, you're probably going to get away with that. But if you're audited, one of the first things the IRS asks for is bank statements. They're going to look at how much money went through your accounts. If you've reported $40,000 in gross receipts/wages, and the IRS sees $65,000 worth of deposits, you've got some explaining to do, and it better be good. Remember: Cash. Leaves. Tracks.
That's the most important part right there. Report the income you did receive, regardless of whether you got a form. So many people think that because they didn't get a W-2 or 1099, that income is not subject to tax. Now, if we're talking minimal amounts here, you're probably going to get away with that. But if you're audited, one of the first things the IRS asks for is bank statements. They're going to look at how much money went through your accounts. If you've reported $40,000 in gross receipts/wages, and the IRS sees $65,000 worth of deposits, you've got some explaining to do, and it better be good. Remember: Cash. Leaves. Tracks.