For info only. 2012 is gonna be a very bad year for FFLs

[Checotah]

So AJ if I understand what you're saying. I sell some of my extra paperclips and try not to report the income even though it is income and taxable by law. The IRS would be able to prosecute. Well, that seems right. The law requires one to pay taxes on net income. I would be able to subtract the cost of the paper clips from the sales revenue and pay taxes on the balance. If I were to not report those sales, I would be in violation of the law. Can't fault the government for trying to get their pound of flesh.

 

Now , that being said. I vehemently disagree with the tax laws. They should be changed. They are next to criminal. But we must change the law not violate it.

 

Sawyer, your tax bill would be based on the $989.50 monies received less any business expense incurred such as the actual cost of the rifle plus shipping, insurance, advertising. You can call stuff any name you want. All the IRS cares about is how much money you received and what cost was incurred to receive it. You pay tax on the difference.

 

Most of that is fine and dandy for folks in business. This change, as I understand it, tacitly puts everyone in business for their personal lives. Businesses naturally keep records of purchases and most sales, but individuals don't. How much did I pay for that widget and when did I buy it? And businesses can have the same problem if they have a capitalization floor higher than the legislation basis amount. Sure, they keep records of when/where/how much for capitalized assets, but not on expensed items. Additionally, the current tax forms don't really provide a section for individuals to record those sales/expense items except in either capital assets or the additional job-related expense schedules, which aren't set up for this level of reporting.

 

Man, this whole thing is really bad; sure hope it doesn't pass.

[Badlands Beady]

Most of that is fine and dandy for folks in business. This change, as I understand it, tacitly puts everyone in business for their personal lives. Businesses naturally keep records of purchases and most sales, but individuals don't. How much did I pay for that widget and when did I buy it? And businesses can have the same problem if they have a capitalization floor higher than the legislation basis amount. Sure, they keep records of when/where/how much for capitalized assets, but not on expensed items. Additionally, the current tax forms don't really provide a section for individuals to record those sales/expense items except in either capital assets or the additional job-related expense schedules, which aren't set up for this level of reporting.

 

Sounds so bad it almost makes me doubt the accuracy of what folks online are saying about it.