do we need to file tax on the coral sales?

[JayM]

I think if you hit an audit you could more than make up for the $150 in 'income' with your reef related expenses. In an audit, that $150 will be the least of your worries

note, I am not a tax professional, but I did stay in a Holiday Inn Express last night

 

[Andy V]

I think if you hit an audit you could more than make up for the $150 in 'income' with your reef related expenses. In an audit, that $150 will be the least of your worries

note, I am not a tax professional, but I did stay in a Holiday Inn Express last night

Why report any "income" in the first place? This is a personal activity and nobody is making any profit from it.

I think the point is that the IRS is never, ever going to audit you for not having claimed income from some selling of corals to private parties. How would they even find out? But if you do report this income (for whatever insane reason that would be) because you want to pay tax on something you don't have to, you WILL be audited.

So it boils down to this: 1. Do nothing (perfectly legal) and keep all of your proceeds. 2. File taxes and trigger an audit, taxes, and possibly penalties for trying to claim deductions that you can't.

Seems like a clear choice to me. I have no idea why anyone would ever do this.

 

[afboundguy]

Just a head's up that asking for legal and tax advice online should be taken with a grain of salt and it's probably not the best idea.

Anybody with tax questions in regards to this hobby should consult with a tax accountant who is up-to-date with today's tax laws.

Again the BOD and BRS advises members to reach out to an accountant or other certified tax preparer and to be weary of using legal advice posted on the forums as 100% factual and truthful regardless of who posts.