other forms of paynent like venmo

[JRLawrence]

Originally Posted by adamwest123

Only if it's income, and even then only on the profits. Like for example if you buy a brand new couch and then sell it 2 years later for half the price and they pay through Venmo - you didn't see a profit so you owe no taxes on that. If you buy a used couch for $100, fix it up, and resell it for $200 you only owe taxes on the $100 profit you showed. If someone sends sends you their half of gas, dinner, rent, etc you don't have to pay taxes on that. If it's a gift you don't have to pay taxes.

So if you're running a high volume venmo account that is honestly a business account to receive income then yes you will need to take careful records and pay taxes on it. If you're using it as a way to transfer money, you don't have to as long as you can speak to it. So, I suspect a lot of people are going to be "splitting bills" and "selling used furniture" in the notes.

Good comments because that is the way things are suppose to work. However, other income that is not tax (like you ladies) is referred to as "The Black Market" in Macroeconomics (theory of taxation and government spending) because it falls through the cracks and doesn't get taxed. The biggest pushh by Biden is to close those cracks and collect the tax. The Democrats like to tax and spend, that means they are pushing to collect all they can, even the used furnture you sell. You will have to prove that you only made $100 out of a $200 sale. That means keeping records that prove your points, or wind up with an argument abd still pay the taxes. Little notebooks are acceptable, if you are consistent.

[adamwest123]

Thanks for that. Yes, it's not that tough to run a set of books that keep the IRS off you. If the guy can comment that it's a gift or anything else not income then you have a basis for not paying taxes on it. You just have to say that guys give you gifts to impress you and beyond that it's not the IRS's business. No goods are exchanged and I'm 99% sure the guys aren't claiming it on their end so the ladies should be fine unless they are literally pulling in millions of dollars and the associated scrutiny.

The tracking for things like Venmo should probably go up to a much higher reporting threshold but I think Casinos have the same reporting threshold of $600, just to log it for end of year reporting. If after a year or two goes by and the IRS discovers the sheer volume of reports doesn't justify the extra effort to sort through them for unreported income for casual taxpayers, they will revise it. Ultimately, it's kinda on them to dispute it. Claim your income using your numbers, and challenge them to prove it's wrong. At a basic moral level, if really is a gift for the ladies time and anything else is the girl does is to keep you happy in return then it's not income. The burden shifts to them to prove otherwise. Keep your records and you should be fine.

In a broader sense though it's also an opportunity. I know a lot of girls go more than just escorting. Onlyfans and Chaturbate and stripping and modeling present revenue streams which have various degrees of reporting tied to them, so if you do mix them all up you're going to have to report some of it inevitably because the other end will. But, you can start claiming business expenses against that income too. There's an article about it here that goes into a lot of examples - it presents some great points like getting to deduct hotels and even your rent as business expenses so if you do track and report you might even end up being fully legit and paying less in taxes at the same time. Article

[dumars]

QUOTE=Knight69Fun;1063218484]I don't have a bank account tied to PP, just a credit card that I have top status with. They've always taken my side on anything I've had to challenge.[/QUOTE]

Cash is King, long live cash!