"How do I file my taxes if I get paid cash?"

 

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I really want to do business in a nightlife industry. But the problem behind all ...
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    Default "How do I file my taxes if I get paid cash?"

    I really want to do business in a nightlife industry.
    But the problem behind all of it is that that not only do they pay in cash, but they don't give you any forms to fill out, so in order words its money under the table. Or if you rent a limo bus to pick up people, and each of the people pays $20 to get on the bus, its still all cash.

    So my question is... If I do get paid under the table, can I still go to the government, present my case, and pay the taxes? Like I'll tell them...

    "I got paid $100,000 this year, (present some numbers, but legal paperwork, just numbers of attendance), here is 17% in taxes, I'll see you next year"




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    Default Re: "How do I file my taxes if I get paid cash?"

    Get an accountant.
    Really, I mean they went to school for it,
    they're the ones you can count on.

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    Default Re: "How do I file my taxes if I get paid cash?"

    My question and it's probably the most obvious, if you are getting money under the table, cash in hand and as we like to call it from where i am from black money, why do you want to pay tax? I take it you are putting into a bank acount which comes to my next question, why not bury it in your backyard ?

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    Default Re: "How do I file my taxes if I get paid cash?"

    You have 2 options:

    1. Claim nothing and hope you don't get audited. If you get audited and you live like you don't have any money....then you will be fine. (You likely will never get audited actually) If you are ballin and riding around in a nice car and live in an expensive place, etc....and you get audited...then you will have some explaining to do.

    2. Take a look at how you live...come up with a reasonable number for what you make....make up some paperwork for it and tell them you get paid cash....and file taxes for that reasonable amount. They will be happy to get paid anything and if they did audit you....they have nothing to go on if your lifestyle falls in line with the amount you claimed.

    Just use common sense and you will be fine. Don't claim nothing if you have BMW payments and don't claim you made 20k if you had 100k go into your bank account and only 50k going out.

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    brent360 is offline Newbies
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    Default Re: "How do I file my taxes if I get paid cash?"

    Cash?
    Taxes?
    What taxes?

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    Default Re: "How do I file my taxes if I get paid cash?"

    Quote Originally Posted by viralmoney View Post
    My question and it's probably the most obvious, if you are getting money under the table, cash in hand and as we like to call it from where i am from black money, why do you want to pay tax? I take it you are putting into a bank acount which comes to my next question, why not bury it in your backyard ?
    Because 95% of my income is cash
    And if I claim the 5%, and drive the car, pay for the house, take vacations, the IRS (or the CRA here in Canada) will start to wonder how on every $5 I have extra $95 lol

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    Default Re: "How do I file my taxes if I get paid cash?"

    If you make 100K it's more like 40% in taxes not 17%.

    There are loop holes but 17% is a absurdly low. Just stick with
    not paying taxes and don't get caught.

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    Default Re: "How do I file my taxes if I get paid cash?"

    If you have a business and make 100k in cash and don't claim anything, the IRS is going to know you are full of it. They can look at purchases and what you should be reasonably making to make their case that you owe them.

    Claim enough of it that is reasonable to an outsider that doesn't really know how much you are making. Put the burden of proof that you are lying on them.

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    Default Re: "How do I file my taxes if I get paid cash?"

    Can someone drop a dime on you? How many years will this income go on for? If so and if you are planning to do this for a while you better come up with a plan.

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    Default Re: "How do I file my taxes if I get paid cash?"

    I don't know about Canada and the CRA (can't run anywhere) but in the US and with the IRS (I run south), there are a few things that I can do. See if I give myself a high salary, I will pay a higher rate than the corporate income tax.

    1. That trip to Costa Rica to the jungle resort, that will be for work and company will pay for it. I mean, I need to do research and see how I can market that resort in person not on what someone else says.

    2. Company will own my home as a real estate investment. Besides that is a perk of being the president and CEO.

    3. Company will own the good vehicles while I own a '79 Ford pickup. (personally the '79 is much better)

    4. One of the company benefits is health insurance. Since I am the only employee, I only have to give it to me. You can only do this if you are a full blown corporation.

    5. My board of directors are cheap bastards so I only get minimum wage.

    6. Because I am considered white collar management, I don't get paid overtime.

    Man writing this all down.... My company sucks but it has some good benefits.

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    Default Re: "How do I file my taxes if I get paid cash?"

    Exactly what I was going to say. Why even pay? Pretend you are a welfare case...

    If all of my money was in cash I would claim nothing... ever.


    Quote Originally Posted by viralmoney View Post
    My question and it's probably the most obvious, if you are getting money under the table, cash in hand and as we like to call it from where i am from black money, why do you want to pay tax? I take it you are putting into a bank acount which comes to my next question, why not bury it in your backyard ?

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    Default Re: "How do I file my taxes if I get paid cash?"

    Quote Originally Posted by Imhotep View Post
    Exactly what I was going to say. Why even pay? Pretend you are a welfare case...

    If all of my money was in cash I would claim nothing... ever.
    Well yeah, if its like $500/month or something, no one will really care.
    Heck, I'm sure you can even pull as much as $500/week and no one will care.

    But let's say that you make $1000/week, and $950 of that is cash.
    You claim only the $50 by the T1099 form (or what ever form is in your country) as a self contractor.

    In reality... You'll be making $4000/month, on paperwork you'll be making $200/month, and then what? You go on welfare and still collect those $4000/month? What if you buy new cloths? Car? Vacations? Resorts? Spas? Bars? Entertainment? Electronics? You buy it, and then they'll start asking you, "How did you get it? Just by $200/month"

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    Default Re: "How do I file my taxes if I get paid cash?"

    Quote Originally Posted by SpellZ View Post
    Well yeah, if its like $500/month or something, no one will really care.
    Heck, I'm sure you can even pull as much as $500/week and no one will care.

    But let's say that you make $1000/week, and $950 of that is cash.
    You claim only the $50 by the T1099 form (or what ever form is in your country) as a self contractor.

    In reality... You'll be making $4000/month, on paperwork you'll be making $200/month, and then what? You go on welfare and still collect those $4000/month? What if you buy new cloths? Car? Vacations? Resorts? Spas? Bars? Entertainment? Electronics? You buy it, and then they'll start asking you, "How did you get it? Just by $200/month"
    You could "clean" the money by visiting casinos, just at less than $10K a visit. Tell the IRS you're a professional poker player. Build yourself up an on-paper income to the level you feel you need to cover your legitimate expenses / mortgage / bank savings etc.

    Buy everything else with cash.

    You could also start up cash / coin businesses like laundromats and do the same thing.

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    Default Re: "How do I file my taxes if I get paid cash?"

    That sounds incredibly paranoid! Now if you buy a fkn yacht then that is stupid. But if you only knew how many people living in the "projects" or who are on welfare had $50,000.00 + cars, computers, iphones, nice furniture, and all kinds of expensive clothes without being caught. Do you think there is some service that goes around checking what you buy? You find an angle, have another person with a good job and good credit co-sign on the car, or on the house, mortgage it and just pay the bill on it, then switch it to your name, the possibilities are endless!

    Now I'm not saying that will be good for you... it really depends on what state and city you live in and it depends on a lot of other things too. But as you can see it IS possible. I'm not on welfare or anything like that but I claim maybe 40% of all I make. I'm not giving away any of my secrets because that would be suicide but you get the idea!

    Autumn's casino idea is another good way to "launder" cash. You could get a part time job, or have a friend say you work for them, so many things you can do.



    Quote Originally Posted by SpellZ View Post
    Well yeah, if its like $500/month or something, no one will really care.
    Heck, I'm sure you can even pull as much as $500/week and no one will care.

    But let's say that you make $1000/week, and $950 of that is cash.
    You claim only the $50 by the T1099 form (or what ever form is in your country) as a self contractor.

    In reality... You'll be making $4000/month, on paperwork you'll be making $200/month, and then what? You go on welfare and still collect those $4000/month? What if you buy new cloths? Car? Vacations? Resorts? Spas? Bars? Entertainment? Electronics? You buy it, and then they'll start asking you, "How did you get it? Just by $200/month"


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