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Found money. Is that something people declare on their taxes?

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While taking apart a parts car I bought last year, I found an envelope in the trunk floor under the liner containing ten 20's. Hypothetically speaking, would most people report this on their taxes? It's not earned income. If anything, it's most like a gift.

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You bought the car, which contained this extra part you weren't bargaining for.

Same deal as if you bought the parts car... (more)

Dracolith (May. 23, 2017 @ 2:32p) |

If your good and conscious enough doing good deeds, you may consider my opinion finding the previous owner of the car an... (more)

exclusivesite (May. 23, 2017 @ 11:05p) |

Yea right. Besides the fact that the logistics of, and the time to, find the previous owner would cost many times more t... (more)

atikovi (May. 24, 2017 @ 6:31a) |

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Why would anyone declare income or gifts that is impossible to prove you got, especially if it's de minimis? 1099 has de minimis of $600 a year.

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Ok so there is a minimum, but if it was more, like 10K or 100K, is it taxable? Like winning a settlement in a lawsuit?

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Interesting topic for a 20 page debate.

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Yes, if you're someone who looks at big government as something to be adored.

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Hypothetically, it reduced your cost basis in the car.

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atikovi said:   Ok so there is a minimum, but if it was more, like 10K or 100K, is it taxable? Like winning a settlement in a lawsuit?
  Did you cut your hand while removing the parts from the car, or otherwise hurt yourself?  Call the cash an injury settlement.

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Be careful if a police dog every gets a sniff of that car.

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Well, technically you didn't find the money on the sidewalk. You bought it. The car and its contents.

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atikovi said:   Ok so there is a minimum, but if it was more, like 10K or 100K, is it taxable? Like winning a settlement in a lawsuit?
  Technically, yes of course it's taxable, its not a gift.  If its less money than you paid for the car there's all kinds of arguments for why you wouldn't have to pay taxes on it, but yeah, if you bought a car from an estate sale and there was a million dollars in the floorboards (assuming you actually get to keep the money, which also would depend on a lot of factors), that's definitely taxable.

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atikovi said:   Like winning a settlement in a lawsuit?
  
Well, no:  Compensation for Physical Injury is Not Taxable

As a general rule, the proceeds received from most personal injury claims are not taxable under either federal or state law. It does not matter whether you settled the case before or after filing a lawsuit in court. It doesn’t matter if you went to trial and won a verdict. Neither the federal government (the IRS), nor your state, can tax you on the settlement or verdict proceeds in most personal injury claims. Federal tax law, for one, excludes damages received as a result of personal physical injuries or physical sickness from a taxpayer’s gross income.

This means typical personal injury damages that are meant to compensate the claimant for things like lost wages, medical bills, emotional distress, pain and suffering, loss of consortium, and attorney fees are not taxable as long as they come from a personal injury or a physical sickness. A physical sickness means a claim for an illness. If, for example, you were negligently exposed to a germ that made you sick, any damages that you recover as a result of that illness would not be taxable.

NOLO 

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atikovi said:   ....Hypothetically speaking, would most people report this on their taxes? It's not earned income....
  I say no most people would not.

 

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atikovi said:   Ok so there is a minimum, but if it was more, like 10K or 100K, is it taxable? Like winning a settlement in a lawsuit?
  
only if  settlement is for lost income

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So, a mother and a child are drowning...

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The mother...if she's hot.

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The government needs that money!

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atikovi said:   The mother...if she's hot.
How old is the child

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rufflesinc said:   
atikovi said:   The mother...if she's hot.
How old is the child

  Do any mothers refer to their 18+ year old offspring as a child? If so, for all you know their ages could be 90 and 65.

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atikovi said:   
rufflesinc said:   
atikovi said:   The mother...if she's hot.
How old is the child

  Do any mothers refer to their 18+ year old offspring as a child? If so, for all you know their ages could be 90 and 65.

  Yes, mothers do.  But the mother isnt asking the question.

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atikovi said:   
rufflesinc said:   
atikovi said:   The mother...if she's hot.
How old is the child

  Do any mothers refer to their 18+ year old offspring as a child? If so, for all you know their ages could be 90 and 65.

That's why you gotta ask. Christian troy in Nip/tuck got invited to a mother-daughter three way by a MILF. She turned out to be the daughter; he still went all in.

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Which form would you use to report finding money in a car?

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b534202 said:   Which form would you use to report finding money in a car?
  1099-Car$$

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lonestarguy said:   Be careful if a police dog every gets a sniff of that car.
  I had a co-worker who bought a used pickup at an auction.  He took it in to get a new radio installed and the cops showed up at work and asked him to come downtown.  Tirns out the technician found a brick of cocaine hidden under the dash.   Some might find that more appealing than a couple of 20's. 

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Find out who the previous owner is and return the money- problem solved.

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nope

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TravelerMSY said:   Well, technically you didn't find the money on the sidewalk. You bought it. The car and its contents.
  There's an old case involving finding money in a piano the taxpayer bought. I don't remember what the result was but it probably talked about that-maybe someone can track that down.

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It's true, you're supposed to report any income to a certain extent. For example, if you make money selling illegal drugs - regardless of the fact that the act itself is illegal, not filing it as income is also a crime heh.

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I had a dream where i found a dollar that was clogging up a washer I bought cheaply.

If it actually happened, guess that would make me a tax cheat.

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Then there is the mother lode of found moneys:

https://en.wikipedia.org/wiki/Saddle_Ridge_Hoard

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drodge said:   
lonestarguy said:   Be careful if a police dog every gets a sniff of that car.
  I had a co-worker who bought a used pickup at an auction.  He took it in to get a new radio installed and the cops showed up at work and asked him to come downtown.  Tirns out the technician found a brick of cocaine hidden under the dash.   Some might find that more appealing than a couple of 20's. 

  That's why you always do your own auto repairs.  Save money for the H, and the B may just be included!

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I just found 40 cents while using a metal detector to find my property stake. Do I need to claim that as income when I file taxes?  Technically, I would think not because it was already on my property, thus already mine, even though I didnt know it.  Thoughts???

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Was the 40 cents payment listed on the HUD when you bought? If not you must have committed mortgage fraud by not disclosing the money the seller gave you!

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snnistle said:   Do I need to claim that as income when I file taxes? 
  Not until you sell the house when it reduces your cost basis.

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snnistle said:   I just found 40 cents while using a metal detector to find my property stake. Do I need to claim that as income when I file taxes?  Technically, I would think not because it was already on my property, thus already mine, even though I didnt know it.  Thoughts???
As long as you don't find any more money this year, you're fine. Round to the nearest dollar on your tax forms.

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zapjb said:   
atikovi said:   ....Hypothetically speaking, would most people report this on their taxes? It's not earned income....
  I say no most people would not.

 

  Depends on what other skeletons you have in your closet.  You dont want to get Al Capone'd.

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Go gamble it away. Claim it as a gambling loss. Have government pay you



(I understand this isn't how it works)

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You bought the car, which contained this extra part you weren't bargaining for.

Same deal as if you bought the parts car and sold the steering wheel for $200,
Except selling the steering wheel would be income from the sale transaction.

There is no such thing as "Income from buying something", at least not yet.
You got the car for $200 less than you should have had to pay to get it.

OK, So if you paid less than $200 for the parts car, then your "Purchase" was
actually a barter where you received things more valuable than what you traded away.

In a weird way, a portion of the $200 could in theory be income, but it's not a straight up
200 income.

Also, I would say it's too small to report. If it costs less than the accounting fees to
properly advise on and handle it, then don't report it.

Skipping 2 Messages...
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Yea right. Besides the fact that the logistics of, and the time to, find the previous owner would cost many times more than the $200, the owner probably has long forgot about it now. Besides, it's finders keepers.

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