Taxes On Consignments

[Griffins]

Originally Posted by t206hound

There was a skit (madtv/snl) or a comedian I heard long, long ago where a person involved with "illegal activities" would stand in line multiple times at the same bank and deposit $9,999 each time.

Actually that is illegal, it's known as sequencing and I was warned against it.

Always amazes me that auction houses aren't required to issue 1099's. I have to 1099 my janitor and anyone else I pay over $599. a year to, assuming they are not incorporated.
And just because you don't get a 1099 don't assume the payer didn't report it and just neglected to send you the form.
Always best to report all income and then find the cost basis for that income rather than under report.

[Runscott]

Even if the bank isn't reporting deposits to the IRS, if you get audited it's still all in your bank records as large deposits. I would assume that an audit could involve you producing your bank statements and explaining such deposits.

[joetinkerfan]

After doing some searching I was able to find all of my purchase history for my cards..Which is a good thing! For those of you that have been through this process before, are any of you aware or not if there are sections on the HR Block or Turbo Tax sites where you submit this information or would I have to speak to someone in person. Thank you again for the much appreciated information.

[buymycards]

I don't know the cash reporting threshold for banks, but with the Post Office, cash transactions of $3000 or more have to be reported to the Secret Service. If you come in and purchase $3000 worth of money orders you have to fill out a form. The info on the form goes into the computer system and the transaction is reported to the Secret Service. It is call the Bank Secrecy Act.

Rick

[frankbmd]

A good reason to keep a closet full of cards and receipts from the golden era, 1986-1995.