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I'm 14 & Have Tax Questions [Story Explained]

Discussion in 'Business & Tax Advice' started by BHFr3shY, Jun 17, 2009.

  1. BHFr3shY

    BHFr3shY Registered Member

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    Hey.

    So this was bound to happen, I am 14. Living in the U.S. I started off my career as an IMer doing petty work forum posting or filling out offers at GPT sites. I started when I was the age of 12. Over the two years, I have read literally every method to making money I could get my hands on. I couldn't do anything that made bank cause I would always need my SSN, or legal papers, or even a credit/debit card to go through with the method. I have tried a few methods, and never maxed out the $600/year I can with a few sites without sending in a W9.

    In the past couple months, I met a guy, 24 who wanted to money. Now of course I needed money myself, to me... $200 was a crapload of money. I bought a guide called BlackHat Buzz from DP... It had to do with Clickbank and so I offered to this guy the same method, except with coaching, for $200 and with automation (for another $200). Programming wise, I only knew autoit3 which was a macro language such as AHK (based off of au3). I ended having the price set to $400.

    This was the single largest payment I was receiving in my life. I had no idea how to receive it. The guy said he was banned from paypal, couldn't use any other payment processors, couldn't buy any prepaid cards, ect.

    We finalized the deal, but he cancelled last minute. A while later, I found a SIM card method that dealt with tmobile dealership codes, I made a deal for the method + setting up a site (I was always good at that.) + coaching him for $1500. By that point I was quite excited.. I finally told the first person IRL about what I do online. She's 19 and was surprised as to how me, just turned 14 could make that much money. She said she would cash my check, so I was good to go. Well, that method wasn't for him because of payment processing issues, long story short... this method was trash bin'd.

    I will skip some things that happened in during this time, maybe I'll explain another day.

    So it's a week before May starts and the same guy that wanted coaching comes to me with a method he bought off of karbin at DP. Asked me if I knew the method, I did and well we got everything ready. I was to receive $25 per lead he sent to PussyCash. There was a $100/sale promo running. We ordered up $500 worth of prepaid cards from gift2go, and I tested one card to try as a "sale" and the card wouldn't go through. Why? Because we got $25 on it, and they charge some sort of 15% overcharge and then refund the money.. forgot the reason. Anyways, he had already sent me my payment for the signups, it was $500 in 2 cards (activated) of $250 each. I owed him $500 - $50 (for blog creation adult site) and we had to scrap the method because the pussycash promo would have ended if we tried to get cards with the right balance.

    Some time passed... Skip > fast forward.

    I see professional20's signature which explains how he coaches on how to make upto $500/day. I contact him and purchase soon after. A requirement is US verified paypal, now I just got one (used prepaid for credit card and netspend account for bank account) but it's only 2 weeks only. It has to be atleast 30 days old for my use (don't want to reveal method), so it's currently on pause until the end of the month. A month from then, that will also have me making $500/day so factor that info the taxes.

    Now, here is where I start making bank. I receive $1k upfront for this. We are doing a JV with CPA and SSM (secret submit method by bodeezy). We are applying to 30 CPA networks, already bought SSM, and xrumer is coming tomorrow. This all came out his pocket, I'm the brains... And he's the money. I have a plan of action to making $500-1k+ per day, and it will be gradual til we hit that, but even with 20 networks, we will start with $200 per day. We are planning on using fake files with P2P and xrumer for mass warez posting + other uses. I get 1/3 of everything he makes, and right off the bat we are splitting it 50/50. That's pretty much like 65/35. Anyhow, you see the potential

    I'm looking at and the $1.5k I recently made. I need a place to put all of this money, it's going into my sister's bank account. She isn't currently earning so she doesn't pay taxes, she is included with my parents. Now, she will need to do taxes, because we plan on staying legal. She is in med school and there can't be any bullshit with the law going on here. I need tax advice, what does she/me have to do to keep this legal and by the book? I know it may be illegal by me earning anyways, but no one has to know that. I am looking at $200k+ per year. Also, if there is any way I can make this easier (aka using a CPA), money isn't an issue. Also, how do you even explain that sudden rush of money?

    Now, I'm sure there are going to be the people who think I am not going to make much money, and that this is fluff, so I guess I am prepared for that. I will also keep this updated, or a new thread in the blackhat lounge with how that goes for me.

    If you can shed some light, please post below.

    -BHFr3shY

    P.S. My hands hurt from typing this from my iPod. I'll post a more complete life story of my internet marketing days in the lounge section, from my laptop.
     
    Last edited: Jun 17, 2009
  2. oblio

    oblio Newbie

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    Dude if you are doing blackhat already - realize that a bank is no place for your money.

    What are you going to tell the feds and your parents when they find out and inquire where it came from?

    I would make the partner dude pay you in CASH and find a real good stash place.

    You can drip it into bank accounts slowly as you get older.
    Besides that money will be taxed and you don't need to set off any flags.

    You may consider getting a safe or saftey deposit box as another idea.
    Trust nobody, family or not, people get stupid when it comes to money and if you do make tall cash and let a "responsible adult" baby sit your money
    your are asking for trouble in a major way.

    take what I said and do what you will............

    Peace,
    O
     
  3. demiurge714

    demiurge714 Newbie

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    just talk to a tax person but for now plan on setting aside like 30%-40% of what you make for taxs just to be safe
     
  4. BHFr3shY

    BHFr3shY Registered Member

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    Yeah I'm saving 80% or more of this anyways, I only need money to invest on things here and there.

    Tbh, I did get the $1k from my partner in cash via western union. All payments are supposed to be in cash so we don't have to mess with taxes, but my sister is worried with the legality of that, plus you don't stash 200 grand. She wants to put it in a bank accounts and paying taxes isn't a issue. I am not keeping it in cash, because that is straight up crazy.

    Thanks for your opinions!
    BHFr3shY
     
    Last edited: Jun 17, 2009
  5. Afflicted

    Afflicted Regular Member

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    You are an inspiration LOL
     
  6. BHFr3shY

    BHFr3shY Registered Member

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    Haha thanks, I got in early.. And BHW has only helped! Ohh LOL I forgot to add in my venture of PPI (pay per install), I'll complete the story tomorrow.
     
  7. oblio

    oblio Newbie

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    make the money first
    worry about it later
     
    • Thanks Thanks x 1
  8. B*Dogg

    B*Dogg Registered Member

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    Dude, first of all if you are 14 and have the nouse to do what you are doing and the literacy skills to communicate it like you have then bravo. I'm 24 and your mentality shits on most people I know my age.


    Ok, to your problem. So you have cash coming in on the sly, and you want to make it legit yeah? Enter money laundering.

    The basic concept is you have a business that would earn you cash in a legitimate way, and you feed it with cash you earn elsewhere. For instance, if you were to start say a lawn mowing business (lots of things could work, its just an example). You would take cash from your neighbours, and mow their lawns. If you did this for real, the IRS would see nothing except the cash deposits into your bank account, and you would submit your earnings, deductions and pay your tax. Everyones happy.

    Now, you dont actually mow any lawns. You knock up a cash receipt book and make sure there is a lawn mower in your back shed. Any time you earn some money from IM you put it in your bank, and fill the receipt book to match the amount, maybe you do 20 receipts at $50 each for every $1000 you bank. No names, just a scribble with the amount and a date. When it comes time to do your tax, you submit your paperwork as required. You claim a few deductions for fuel, mower blades, safety goggles etc, pay the required tax, and as far as anyone is concerned you earned that money out mowing lawns like a good 14yr old should.

    If you ever get audited you have the receipts all there, and the mower is in the back shed if they really wanted to check you out.

    Thats the concept, there is a million and one ways you can spin it, to suit any amount of money. If this sounds like it could help you feel free to PM me, it's something i'm very good at, i'll help as much as I can.
     
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  9. character

    character Regular Member

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    If you pay taxes on your CPA money, why would you need to cover where its coming from??
     
  10. mak111

    mak111 Jr. VIP Jr. VIP Premium Member

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    just as the post above me said...
    if you're earning from CPA.. even though it is blackhat, the company doesnt know that.
    so you're earnings are legit. why hide your earnings like drug money if it isnt?

    you, market, online.

    just file your taxes normally, nothing to fear its all good.
     
  11. character

    character Regular Member

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    blackhatter88 I'm under 18 and already have my checking account

    why do I need to hide where the cash flows coming from if I will pay taxes for it?
     
  12. noob411

    noob411 Junior Member

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    character you don't need to hide it just hire a cpa they are not that expensive. Save your receipts for everything end of everymonth add them up into categories, your cpa should give you a book for this and should explain to you what type of receipts to save.
     
  13. character

    character Regular Member

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    ok thanks
     
  14. equin0x

    equin0x Newbie

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    Answer fail.
     
  15. gimmedat

    gimmedat Junior Member

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    The IRS doesn't care where your money comes from as long as you're paying taxes on it. Talk to a CPA or Tax Attorney.