Bonzi Lighthouse
Well-Known Member
Yeah and $100K in income and no material costs, not a red flag at all, go for it.
Legitimizing cash!
- Thread starter oOBe RyeOo
- Start date
tip top toker
Well-Known Member
The point of food is that outgoing stock has nothing at all to do with incoming stock. Niether do costings. You can turn anything into anything and sell it for whatever you like and on the whole, there is nothing but a till receipt to show for it. You'll pay tax on your sales, but you now have legitimate money 
As to $100K from a hotdog cart being suspect, well of course, which is why you simply cater the size and type of laundering business for the amount of money you need to launder.. simply a matter of playing it smart, not too difficult.
As to $100K from a hotdog cart being suspect, well of course, which is why you simply cater the size and type of laundering business for the amount of money you need to launder.. simply a matter of playing it smart, not too difficult.
thedoc08
New Member
That's the point I'm making. If the IRS suspects he's selling less or no hotdogs than he claims, they wouldn't give a shit because he's still paying taxes (more than they think he should be). They really don't waste time / resources unless they believe someone is underpaying their taxes.
thedoc08
New Member
You bought those hotdogs, buns, ketchup, mustard, relish, cream cheese, chili, paper hotdog holder, and napkins with cash, remember?
medicalmaryjane
Well-Known Member
i think those types of things are good businesses but it's a lot of work. i think some of these carts in NYC must make bank but it's all about location, no ones eating a dog on the street in the freezing cold. plus people are more health conscious these and those hotdogs are freaking nasty, especially the boiled one. ive thought about a breakfast cart, i can make a muffin for 10cent and sell it for 3 dollars. coffee costs 5cent and you can sell for 2$. it's a big profit but you ahve to make a shitload of sales to mmake anything
puffenuff
Well-Known Member
Washing dirty money is only worth the trouble if moving tens of thousands of dollars or more at a time. Otherwise just say it was gambling winnings or a gift. If you are going for a continous money cleaning front, try something more transparent than hot dogs or selling physical goods, I would go the route of providing services over goods, the less tangible the better
Bonzi Lighthouse
Well-Known Member
Just think about all the people through out history, and the trouble they got into for lieing.
It's farm income.
It's farm income.
thedoc08
New Member
Put $9,000 in your bank account and say you did well in a poker tournament at a local casino, or more ambiguously; playing poker at a casino. You could easily wash 100k a year with straight cash to bank transactions under 10k. Worst case is the bank files a SAR, alerts the IRS, and you tell them that money came from poker and you fully intend to pay your fair share of taxes on it.
oOBe RyeOo
Active Member
That sounds easier. Would it save on taxes since you wouldn't be getting double taxed by owning the business?
Bonzi Lighthouse
Well-Known Member
Me: I want to deposit $5000
Banker: Where did the money come from
Me: I sold a motor bike
Banker: Cool
Me: I want to deposit $2500
Banker: Where did the money come from
Me: I sold a Gun
Banker: Cool
Me: I want to deposit $1000
Banker: Where did the money come from
Me: I blew Charlie Sheen
Banker: Gross
Banker: Where did the money come from
Me: I sold a motor bike
Banker: Cool
Me: I want to deposit $2500
Banker: Where did the money come from
Me: I sold a Gun
Banker: Cool
Me: I want to deposit $1000
Banker: Where did the money come from
Me: I blew Charlie Sheen
Banker: Gross
oOBe RyeOo
Active Member
But don't casinos keep track of payouts and what not? The casino in my area makes you fill out a tax slip for anything over a thousand.
thedoc08
New Member
Unless you file as a professional gambler, then you've gotta pay the 15% self employment tax.
Bonzi Lighthouse
Well-Known Member
Yes they do,
Here's a look at the federal tax forms you'll need to share your good fortune with the Internal Revenue Service. And if you lost a few rounds before your numbers came up, there's a way you can turn those losses to your tax advantage.
Winning amounts matter
For recreational gamblers, requirements for reporting and withholding from a winning bet depend on the type of gambling, the amount won and the ratio of the winnings to the wager. When you pocket $600 or more (and that amount is 300 times your bet) at a horse track, win $1,200 at a slot machine or bingo game, or take $1,500-plus in keno winnings, the payer must get your Social Security number and let the IRS know that you came into the extra income.
And while poker aficionados argue that the card game isn't gambling, but a game of skill, the IRS still wants details on how well you played Texas Hold 'Em. The IRS now requires all poker tournament sponsors to report competitors' winnings of more than $5,000.
The bottom line is if you are lucky enough to rake in a decent jackpot on a gambling transaction, you're going to have to give the IRS your tax information and, in many cases, you're not going to walk away with all the cash you won.
In addition to telling Uncle Sam that you were a winner and how much, the payer in these situations generally will reduce your payout by withholding federal taxes at the 25 percent rate. If you try to shortchange the IRS by refusing to furnish your Social Security number, the payer could take as much as 28 percent of your winnings right off the top to send to the tax collector.
In either instance, you'll get a Form W-2G showing the amount you won and, if applicable, how much in taxes you paid on it upfront.
When you have to report it
Even if you didn't win enough to trigger W-2G filing, you do want to be a diligent taxpayer and report those gambling winnings, right? The casino, track or lottery agent might not have reported that $25 you won, but it's still taxable income. It's ultimately the taxpayer's responsibility to tell Uncle Sam about his good fortune. You report your winnings -- from the W-2G or those smaller jackpots -- on line 21, Other Income, of Form 1040. In addition to gambling proceeds, this is where you'd report any prizes or awards (cash or the cash value of merchandise) you won. All this money goes toward your total income amount.
However, you don't have to pay taxes on all your earnings, regardless of how you got them. You can reduce the amount of money the IRS will tax by reporting your losses as part of your overall itemized deductions. Check out line 28, Other Miscellaneous Deductions, on Schedule A. That's where you report any gambling losses. You can claim up to the total amount of winnings you entered on your 1040, effectively wiping out any taxable gambling income.
But make sure that this deduction, along with your other itemizations, is more than the standard amount. You always want to use the method that will provide you a bigger deduction.
Even though technically you might be able to avoid taxes on $3,000 you won by claiming $3,000 in bad bets, that's still less than the standard deduction of $5,700 allowed a single taxpayer on 2010 returns. If you have no other deductions to itemize, it doesn't make sense to forfeit the standard deduction's other $2,700 just because you can claim gambling losses.
If, however, your wagering losses are large enough to help boost your already substantial itemized deductions, then fill out the Schedule A.
Keep track of your gaming losses
When you do claim your gambling losses on your tax return, it's a good idea to keep a record of them. While you don't have to send your loss data in with your return, documentation could come in handy if the IRS ever questions the claim. Acceptable gambling-loss record keeping includes a written log detailing the date of your wagers, the location, amount of the bet, type of gaming, and wins and losses. You should also hang on to losing lottery tickets or bingo cards.
The good thing about deducting gambling losses is that, unlike some other deductions, you don't have to meet a certain level before you can claim them. But then again, they aren't completely unlimited.
You can only count as much in losses as you won. So if you spent $100 on lottery tickets and won $75, you can only deduct $75. The other $25 is just part of the price of playing the game.
Read more: Reporting gambling winnings http://www.bankrate.com/finance/money-guides/reporting-gambling-winnings.aspx#ixzz1JF4csw3n
Winning amounts matter
For recreational gamblers, requirements for reporting and withholding from a winning bet depend on the type of gambling, the amount won and the ratio of the winnings to the wager. When you pocket $600 or more (and that amount is 300 times your bet) at a horse track, win $1,200 at a slot machine or bingo game, or take $1,500-plus in keno winnings, the payer must get your Social Security number and let the IRS know that you came into the extra income.
And while poker aficionados argue that the card game isn't gambling, but a game of skill, the IRS still wants details on how well you played Texas Hold 'Em. The IRS now requires all poker tournament sponsors to report competitors' winnings of more than $5,000.
The bottom line is if you are lucky enough to rake in a decent jackpot on a gambling transaction, you're going to have to give the IRS your tax information and, in many cases, you're not going to walk away with all the cash you won.
In addition to telling Uncle Sam that you were a winner and how much, the payer in these situations generally will reduce your payout by withholding federal taxes at the 25 percent rate. If you try to shortchange the IRS by refusing to furnish your Social Security number, the payer could take as much as 28 percent of your winnings right off the top to send to the tax collector.
In either instance, you'll get a Form W-2G showing the amount you won and, if applicable, how much in taxes you paid on it upfront.
When you have to report it
Even if you didn't win enough to trigger W-2G filing, you do want to be a diligent taxpayer and report those gambling winnings, right? The casino, track or lottery agent might not have reported that $25 you won, but it's still taxable income. It's ultimately the taxpayer's responsibility to tell Uncle Sam about his good fortune. You report your winnings -- from the W-2G or those smaller jackpots -- on line 21, Other Income, of Form 1040. In addition to gambling proceeds, this is where you'd report any prizes or awards (cash or the cash value of merchandise) you won. All this money goes toward your total income amount.
However, you don't have to pay taxes on all your earnings, regardless of how you got them. You can reduce the amount of money the IRS will tax by reporting your losses as part of your overall itemized deductions. Check out line 28, Other Miscellaneous Deductions, on Schedule A. That's where you report any gambling losses. You can claim up to the total amount of winnings you entered on your 1040, effectively wiping out any taxable gambling income.
But make sure that this deduction, along with your other itemizations, is more than the standard amount. You always want to use the method that will provide you a bigger deduction.
Even though technically you might be able to avoid taxes on $3,000 you won by claiming $3,000 in bad bets, that's still less than the standard deduction of $5,700 allowed a single taxpayer on 2010 returns. If you have no other deductions to itemize, it doesn't make sense to forfeit the standard deduction's other $2,700 just because you can claim gambling losses.
If, however, your wagering losses are large enough to help boost your already substantial itemized deductions, then fill out the Schedule A.
Keep track of your gaming losses
When you do claim your gambling losses on your tax return, it's a good idea to keep a record of them. While you don't have to send your loss data in with your return, documentation could come in handy if the IRS ever questions the claim. Acceptable gambling-loss record keeping includes a written log detailing the date of your wagers, the location, amount of the bet, type of gaming, and wins and losses. You should also hang on to losing lottery tickets or bingo cards.
The good thing about deducting gambling losses is that, unlike some other deductions, you don't have to meet a certain level before you can claim them. But then again, they aren't completely unlimited.
You can only count as much in losses as you won. So if you spent $100 on lottery tickets and won $75, you can only deduct $75. The other $25 is just part of the price of playing the game.
Read more: Reporting gambling winnings http://www.bankrate.com/finance/money-guides/reporting-gambling-winnings.aspx#ixzz1JF4csw3n
thedoc08
New Member
10k here. Slot payout, or something like a royal flush in let it ride, or a tournament you net over 10k in. A big tourney win or table win under 10k they just have you fill something out for internal record keeping. You could cash out 30k in chips without any paperwork.
oOBe RyeOo
Active Member
that's pretty interesting
323cheezy
Well-Known Member
Go for it man.... me personally i try to not to work outdoors in the sun ... i tend to burn easily ...
and competition is stiff depending where you are ...most the hot spots are already taken .... and not to mention your gonna need a permit and depending on where our located youll might have other fees ......
I mean ....if your idea of having fun is standing out side making hot dogs all day why not..... ???
Me personally id rather just have a consistant paycheck .... doesnt seem like a very lucrative gig... maybe just on weekends....
and competition is stiff depending where you are ...most the hot spots are already taken .... and not to mention your gonna need a permit and depending on where our located youll might have other fees ......
I mean ....if your idea of having fun is standing out side making hot dogs all day why not..... ???
Me personally id rather just have a consistant paycheck .... doesnt seem like a very lucrative gig... maybe just on weekends....
The Cryptkeeper
Well-Known Member
Same here.
thedoc08
New Member
I believe the conjugation of the verb and it's placement expressly implies that the money is currently in hand, yet illegitimate, and OP is exclamating his discovery of a strategy for legitimizing it.