Kelly J. Bullis: If you got this, you owe tax on it
December 31, 2016
I thought it would be fun, while you're nursing yourself back to normal health after last night's celebration, to get some laughs at some of the stupid quirks in our current tax law. So, if any of these items below happened to you in 2016, congratulations! You owe tax on it!
You got a gift card of more than $25 from your boss: Yup, it's a taxable fringe benefit.
The boss let you take a company vehicle on a camping trip: You should know by now personal use of a company vehicle is a taxable fringe benefit.
You caught a baseball: If you caught a historic home run ball, the IRS expects you to report the resale value of the ball as soon as it hits your glove, regardless of whether you actually sell it or just keep it.
Your fantasy football team won the Super Bowl: No matter how much you win, it’s all taxable. FYI, if you win at least $600 worth of cash and prizes from a business operating a fantasy sports league, they will tell the IRS about your winnings too.
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You sold illegal goods: The IRS requires all income, whether legally or illegally obtained is taxable income and must be reported. (This is how Al Capone ended up in prison … unreported income)!
You received alimony from your ex: I'm not kidding! It's taxable income to you. And, to make it even worse, your ex gets a tax deduction for what they paid you.
Your fantasy football team won the Super Bowl: No matter how much you win, it's all taxable. FYI, if you win at least $600 worth of cash and prizes from a business operating a fantasy sports league, they will tell the IRS about your winnings too.
You won a prize at a business event: Can you believe it? Yes! The fair market value of the item is reportable income.
Did you trade an oil change for a haircut? You guessed it. When you trade taxable services, both of you must report that as gross taxable income.
Your Bitcoins went up in value: Since Bitcoin is considered a currency, the IRS considers any gains as taxable in the year they occurred, not in the year you "sold" them.
You're a child entrepreneur: Are you 9 years old (or any age) and got paid more than $400 a year for mowing neighbor's yards, and/or watching the neighbor's pets, and/or raking the neighbor's leaves up, etc.? You must file a tax return and report it as taxable income. Oh, that cold-hearted, IRS!
I could go on and on, but this is enough! Are you laughing yet? Headache gone? Happy New Year!
Did you hear? Ecclesiastes 8:4 says, "Since the word of the king is authoritative, who will say to him, 'What are you doing?'"
Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459. He's on the web at BullisAndCo.com and also on Facebook.