Paying no taxes?greenspun.com : LUSENET : Countryside : One Thread
I've been reading the latest article in Countryside online, and the Anathoth community says they keep their individual income below $6,800 per year so as not to pay taxes. Does anyone know (I find that tax knowledge is not a gift I have) if you're married, does this still work? Would I have to file separetly from my husband? would this work if I sold lamb, or would this be considered a business? How much can a person earn selling things without calling it a business? I would appreciate answers to any or all questions, or if you know some official websites that could answer my questions. Thanks so much!!!
-- Jenny Buttke (firstname.lastname@example.org), July 16, 2000
A garage sale is taxable income although I doubt if many claim it. THe 6800 limit is income, has nothing to do with a businesses or not. If your a business then you have other issues to deal with.
As for selling things out of the house vs a " bussiness". If you sell on a regular basis then you would be a business. Again its income to you regardless. Being a business allows you to write off expenses.
-- Gary (email@example.com), July 17, 2000.
There's a different number for single, head of household, and married (joint). You should be able make at least twice as much as a married couple than as two individuals. It also varies according to how many dependents you have and whether you have enough to itemize (charitable, other taxes - mainly property, and mortgage interest payments). It's very hard to generalize for anyone other than "single."
-- Deborah (ActuaryMom@hotmail.com), July 17, 2000.
I'm wondering, if you sell some from your home, how 'they' would know if you make more or less then that anyway?
I mean, if your selling eggs, veggies, berries, crafts or whatever to indiduals in the comunity, there are few no receipts to prove what 'inventory' you have (had) or how many/at what cost you've sold or to whom. So how could they know?
Although I doubt if I would ever sell $6800 anyway but still....
-- In ND (firstname.lastname@example.org), July 19, 2000.
There is a certain amount of money thea we can earn each year before we owe any taxes to the IRS. The amount this year actually is $7,050 for a single person, It is more for Head of Household, married couples, and people over 65 years of age. For good FREE information write to the IRS forms distribution center, for your state and get Publication #17, "Your federal income tax" it will answer all your questions.
-- Ed Copp (email@example.com), July 19, 2000.
Yard sale income would not be taxable if you sell an item for less than you originally paid. That's a loss.
If you manage to make a profit on yard sales, then you owe taxes, but only on the profit. Remember that profit is the money left after expenses: your purchase price of the item, storage cost, advertising cost, etc.
Note that this is only about income taxes. Depending on your state, there may be sales taxes due.
-- Toby Barksdale (firstname.lastname@example.org), July 21, 2000.
It must be remembered taxes are paid on net taxable income, not gross taxable income. With deductions one can earn significantly more than $6,800 and still not be subject to paying taxes.
Until taxable income reaches $20,000 (at least for 1999) all classes of taxpayers (single, married filing jointly, married filing separately and head of a household)pay the same amount of taxes.
For tax purposes I lose money on my farm. Biggest factor is I am allowed to depreciate buildings and equipment. Heck, I could depreciate my cows if I wanted to maintain the records. Loss would be more if I had a mortgage.
I don't mind paying taxes in general. Yes, the government may sometimes be wasteful and it gulls me to have to contribute to paying welfare for someone who could work, but I am basically pleased with what I have in return.
You may have heard someone say, "Boy, I'd hate to pay the taxes on a million bucks," such as winning a lottery. I'd love to do so. You get to keep most of it.
-- Ken Scharabok (email@example.com), July 23, 2000.