Regardless of wether or not you chose to claim your income as gambling winnings or ways on a schedule C, how do you back it up with documentation? If you go to your local casino and win moneys... You get various tax forms which you send in to the IRS when you file.

With hyips and other of such, thats fine and dandy that you need to pay taxes on earnings, but how do you do it? How does the irs know or not that you made the money selling crack...then decided to say you made it "gambling online" or whatnot.

I have read every single post int his forum, and not one person has given a definative answer. SOMEONE must of reported taxes on this stuff in the past. How did you do it? Did you get audited? Someone out there has to have answers man. I have no problem paying taxes...but for godsakes....how is it done?

You can keep track of how much you transfer/deposit. One way could be screen shots.. another way is to transfer your egold to another place (the name escapes me at the moment ) and withdraw that by check.

There are several ways you can report it, but tracking it is very easy. I use a schedule C. What i do is just keep all my online bank statements, then just add up all the deposits to my account and report that amount. I never deposit money into my bank account unless i plan to pay tax on it.

So you don't count money deposited into your egold as taxable profit? Only money transferred from egold to your bank account? Jeff

I don't count anything in my egold account as taxable profit until it hits my bank account, then the amount that hit my bank account is what i'd add to my taxable income. It's just much easier for me to keep track that way since i can just look over my online bank statements and add up my deposits.

I do a download of the entire years transactions from IntGold, StormPay and eGold. I convert it to an excel workbook. It's pretty easy from there, I just use the autofilter and then sort out CREDITS, DEBITS, and WITHDRAWALS (money I actually transferred to bank account). Add up the columns and you have your totals to report on Schedule C. I just give these spreadsheets to my accountant and he figures out where it all goes exactly.

after SP and EMO (and paypal closed my account), i am not keeping them on payment processor now.

Oh i never keep too much in any payment processor either That's never a good idea.

I take out my e-gold through western union.... can that be taxed?

Can I ask how many years have you been doing this and have you ever had a problem with the IR? Also, what "type" of business do you call it?

This is a great learning thread.
I would like to hear how others keep up with their information as well. I hope more MMG members post.

Pam

Well when I get enough money to send it back to my country, I'll be kinda scare, but I don't think there should be a problem if you ask to get back less than 10k, but I don't know anything about my own country laws (Mexico), i don't think they have a law for income coming from any online investment, >_< it will be a tough task to bring it without spilling too much cents.

Okay, SOMEONE please give an example , step step from this:

Say I get $2000 a month from HYIP's... and at the 6th month I have $12000 in my e-gold, I have my exchanger service do a bank wire for a the whole entire $12,000 to my bank account. With my bank, having more than $10,000 requires you to pay taxes.

What happens next?
Does the bank give me a form to fill out?
If so, they will ask what it came from right?
What do I say?
Will they need to know what sources, addresses, websites, I produced this income from?


Please please please, someone who has been paying taxes already on HYIP Income TRANSFERRING TO YOUR LOCAL US BANK ACCOUNTS EVERYTIME, respond...

Interesting forum

Yeah this question has been on my mind for a while and I live in Canada so I'm curious as to howI would report this properly. I thought maybe you guys are buying e-gold debit cards and just using the debit card and not having to pay taxes......any Canadians here help please?

Ya what do you call the business as and do you have a real job besides hyip?

im intested too!!! nice thread! and yes how would you report the extra thousands that you get? or just dont deposit it in the bank account and they wont know or u wont be tax on it?

Yes we are still waiting for this answer...

Why not transfer e-gold to one of them debit cards??

LOL taxes on HYIPs?
Get real, it'll never happen, as long as you don't tell anybody you make it, they wont do anything..

I see, put them on debit cards, but which one is anonymous?
The reason I ask this is because if you make 50K for example.

The hassles of withdrawing that from an ATM are pretty bad
considering there are limits and most of the time they give
20 dollar bills

Swiss bank account might work too.

Offshore is the only answer... No debit card is unknown!

So if you put it offshore, how do you use it at your home country?

first of all im pretty sure that Banks will report any deposits bigger than 3K in 3-5days time. So never deposit more than 3K a week. Also.. You can cash your checks at Arab stores.. Another thing i talked about before when paying taxes.. . is you ever go to the gas station and find a lottery ticket on the ground.. a loser.. Guess what.. Thats a loss Start collecting them, and you can report them as a loss because it is a loss.... just make sure those tickets are yours. Anyway, its quite easy.. I cant figure out how to do it myself.. but a accountant will.. Just add your lottery tickets as a Debit Loss

LOL man you got some unique info there, I appreciate it However what is the benefit of cashing
checks at Arab stores and what kind of Arab store?

I wonder if lottery ticket losses would also count in Canada

Looking forward to hearing from you

If you pay almost $3000 to open a IBC and account just to stay anonymous and tax free why worry about taxes!!!!!!!

What is an IBC account? it costs $3000?

when you cash a check at a arab store.. they only take your address down to verify where you live.. incase it dont go threw.. This way when you cash em there, it looks like your just paying them, and the money is on there hands to pay taxes, not yours.. . because there is no social security # involved, its not a bank, or a cash checking place. there are no records but dont listen to me.. cause its wrong!

IBC=going offshore

Hey ownagesoft,
is it a grocery store or what? How can they cash a check that isn't in their name for you?
Not sure how it works hehe



Ok..

Wont the bank also flag you if you withdraw more the 3k every 3-5 days?

A arab store is like a local convienent store with a weird name, thats unique that is ran by arabs

you write the check over to them, and they give you money for it, its usally 1.00 for every 100.00 they charge.

As for the bank.. I dont know, I know that they will probably call you to verify that you made a purchase that high..

i actually keep my imputs to my bank account under the $200 mark

this way if ever they ask, ill say it was for a birthday present, and i wanted to bank it

but then the rest is somewhere else. so i only use it when i need to

At the moment I use a debit card for most purchases and keep the bulk still in e-gold (It is a private currency which I am pretty sure is not taxable).

In a few months I will persue opening a HSBC offshore account, which is free as long as you have the initial deposit of $10K which can jsut be wired by your favorite exchanger. HSBC is supposedly fully descrete, they only require a copy of your passport and two bills to verify the address, all by mail to open the account. For such a huge bank, where you know your money will be safe, it sounds good to me!

Sounds pretty good.

mines still more descrete

A question for you guys (and gals) who live in the US. I understand the whole idea about keeping the money in E-Gold or whatever then using a debit card to pull some money out at ATMs. The question is when you transfer money to your E-Gold/E-Bullion etc..how do you do it? There's obviously always a track when you do a wire transfer, etc and someone can always come back and ask you why you wired $1k, $5k or $10k to E-Gold or E-Bullion. How do you deal with that? You can pm me if you don't want to answer on the board.

Cheers!

What about for gambling how do I report taxes,or can I just get an offshore account to take care of that?I live in the U.S.I am talking about money in the 100 thousands and millions

Aren't you sort of contradicting yourself here?

its quite simple IMO

im from the uk.. all i do is buy a few debit cards, load them up, then w/d a max £200 ($350) from each card per ATM machine per day.

Always make sure you wear a hoody when w/ding though with the hood up lol.

Now I just have to make £200+ a day online

Ive always found this topic rather funny by the responses. Folks paying taxes on your gambles is silly.

I dont think it is required. Usually the numbers matter. If you have invested a large amount then the profit may be taxable. Still it is quite impossible to prove your hyip income level because it cannot be compared to investments like stock market or banks which contain official reports and stats.

Woah! You're performing a wire of over $10,000 and planning to just walk down the street and whistle, as if it never happened?

Bad plan! Because the banks are required to make a report everytime $10,000 or more is deposited. If you've already done this in the U.S., the government is already aware of your earnings.

What a disaster... Its tax season now so what are you all doing??? If you bank it they willl commmme forrrrr yooouuuuuu At least my internet earnings are legal. I mean if I sold drugs I could put it offshore to probably... If you lie completely about earning from hyip its the same thing as lying about drug money, eventually they'll make you squeal like a pig.

They are required to fill out a CTR, Currency Transaction Report. This alone does not mean anyone will question you or come knocking on your door. It simply lodges it into a database, and if multiple large transactions are made, there is always that possibility. Many folks make transactions that exceed $10,000 many many times a year, yet they are still being reported.



Even if your a drug dealer they expect you to report your earnings. They are not a legal authority. Sure, if they expect something fishy they could alert DEA agents, but they really are just there to collect money and that is it. Obviously an audit on a dope dealer would be amusing. "Okay so you sold how many rocks to Billy Jo-Bob?"

i hate taxes, why must they get paid for doing nothing !

Is it just a gambling ?