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L$ and tax question


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Dillon Levenque wrote:

 

Phil Deakins wrote:

I don't know what a 1099 is - except that it's the years that was 33 years after the Battle of hastings
:)

That William was such a b***ard, wasn't he?
The 1099 is a way for anyone with whom we've earned taxable income to let us know what we earned, and more importantly to let us know they've ratted us out to the IRS so we have no choice but to pay taxes on that income.


It depends on your point of view. He had a genuine claim to England and he thought he'd give it a go but he didn't actually expect to win. He only won because of King Harold's mistakes. Actually it was hiis soldiers who made the mistake that cost the battle - and the country. Also, William's men were offside but I don't think the offside rule was widely accepted in those days.

(The bit about being offside was a reference to a Stanley Holloway monologue, in which he told the story of the Battle of Hastings as though it were a football match.)

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I actually just called LL about this one as I am getting ready to file taxes as well- here in the US.

Oddly enough, they told me they did not provide any verification of income forms to us (so I am assuming we have to collect these all from transaction history) YET they DO report your income to the IRS.  So I am a bit confused as to how they provide this information to the government yet we can not see a copy.

 

My issue:  I will use my paypal reports for income verification purposes when I file but if the paypal form- differs Linden Labs report then it will be a bump in the IRS road map and I'll be in the auditors firing line. I guess I just don't see why they can't provide us with the information they are providing the IRS about us.

 

In any rate- good luck to everyone with reporting this year and to those of you thinking of just by-passing it all and hoping for the best.... Please file.  Even if you have to pay a little money here and now- it is a lot better than possibly paying court fees, attorneys and the Uncle Sam's charges in the future.

 

** edited for a side note:  My tax attorney told me that for the 2013 year, to set aside 20% of all SL related income each month (in a savings account etc) and to review this after three month periods throughout the year.  So after every 3 months, evaluate your proceeds and things you can report such as computer upgrades/repair software, tier payments (done is USD) etc- and file this all.  It makes things a lot easier for the end year- and keeps you organized and on top of the game for when the next tax season rolls around. (thought this was great advise to share).

 

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Pamela Galli wrote:

LL has never given me any kind of report.

Yes, that is what they stated, they don't provide these - so I am assuming that the majority has never had any issue with this- and thusly has had success with the information paypal provides. However,  if you are not making over 20K or doing over 200 trasactions- then you have to do some extra leg work to get the tax-info (so it seems).

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Well Paypal has not sent me the 1099- and under the tax info. section mine states that there is no info for 2012- so- this is the "personal" leg work I spoke of.  I have to contact them to see why I do not have this information. I am sure every situtaion/ individual is different- sort of like those of us who have a book keeper- (Wouldn't that be great).

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Here's Paypal's information on reporting to the IRS.

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W


It says they will report your earnings to the IRS if you exceed:

  •   US$20,000 in gross payment volume from sales of goods or services in a single year
  •   200 separate payments for goods or services in the same year

I'm not sure if withdrawing money from SL counts as a payment from sales since people aren't paying you directly through paypal.

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  • 1 year later...

I believe it is income taken in dollars out to paypal (or sent as a cheque), that is the point that LL view it as cashed out.. until then it is a balance on your SL account, either in $L or $'s....  

Waiting on my 1099 which apparently they will mail out like any other employer will by 1st February.    Gathering all my internet bills too.... Can't make that money without a connection so hopefully at least a percentage will be offset.   

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After talking to my CPA, I don't think you can get taxed, nor can you claim losses based on linden dollars, since it is not "real" currency. However, on money that you converted to your country's currency would be. That's why if you converted more than $600USD, and live in the US, you will/should receive a 1099-MISC form, or if you converted over $20,000USD, a 1099-K form to apply on your taxes.

If you can claim lindens dollars not converted, please explain because then I;d have to make adjustments on mine lol

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Phil Deakins wrote:

Here in the UK such forms aren't needed. We simply itemise our income on the Tax Return form. It doesn't need to be backed up with paperwork. They aren't going to complain if we declare income that we have no evidence for
:)

Wrong.

As soon as you introduce a new and unusual source of income of any significance - which can not be easily validated by reference to the paying authority - HMRC are likely to investigate further (particularly if there is a suggestion that the income might be derived from foreign sources and is therefore potentially subject to double taxation rules, or even ...gasp... money laundering) and demand proof of origin and that you have not understated it, a practice that has discommoded many naive little businessmen in the UK. Tax investigations are fun, but not for the subject of them.

 

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Ronald Greybeard wrote:

hey all im doing my taxes and need to know if i have to put the L$ i turned into RL money on my taxes and if so how do i go about doing that?

If you are living in Greece, then just demand to have your legal liabilities negotiated away, and threaten not to pay anyway - but insist on continuing to receive any and all free handouts available.

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LlazarusLlong wrote:


Phil Deakins wrote:

I Imagine that tax rules/laws are more or less the same throughout the world

Wrong.

Dementia turns you into even more of a jingoistic little englander, apparently.

Wrong ::) Don't be so silly. What I actually said was "I Imagine that tax rules/laws are more or less the same throughout the world so all earned income should be declared". Notice the part you didn't see to think was included in the sentence. With that part included, then tax laws throught the world are more or less the same; i.e. all income should be declared for tax purposes. I hope that helps you to understand things a little better :D

It's interesting that you felt inclined to trawl all the way back to a January 2013 post (2 whole years ago) in a futile attempt at trolling me. Better luck next time ;) LOL

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LlazarusLlong wrote:


Phil Deakins wrote:

Here in the UK such forms aren't needed. We simply itemise our income on the Tax Return form. It doesn't need to be backed up with paperwork. They aren't going to complain if we declare income that we have no evidence for
:)

Wrong.

As soon as you introduce a new and unusual source of income of any significance - which can not be easily validated by reference to the paying authority - HMRC are likely to investigate further (particularly if there is a suggestion that the income might be derived from foreign sources and is therefore potentially subject to double taxation rules, or even ...gasp... money laundering) and demand proof of origin and that you have not understated it, a practice that has discommoded many naive little businessmen in the UK. Tax investigations are fun, but not for the subject of them.

 

Oh. Another trawl back to a 2 year old post,in another futile attempt at trolling me. You're on a roll today. Not a winning roll, of course, but a roll just the same - a losing one lol.

Had you read the post that the one you quoted replied to, you would have realised your mistake before you made it. To avoid embarrassment,  I suggest you do that privately, so that none of see your tail between your legs :D

But just in case you still don't get it, whether or not the tax authority asks for evidence of particular income is irreleavnt. The fact is that we in the UK do not have to get and fill in the sort of form that was referred to. That doesn't mean that it wouldn't help if we did provide such evidences up front, but it isn't necessary here. Perhaps you're mistaking the UK with the Seychelles ;)

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