Do I Need to Report This Income? Part 2
One of the biggest questions when tax time rolls around has to do with income. Not everything comes neatly reported on W-2s and 1099s. What else needs to be reported to the IRS? As I’ve been finding out, just about everything else should be reported. Yesterday, I shared a few types of income that should be reported. Here are some more from a helpful article from MSN Money.
Q. I split $54,000,000 in lottery winnings with 12 of my coworkers. Do I have to report this?
Winnings from lotteries and raffles are gambling winnings. In addition to cash winnings, you must include in your income the fair market value of bonds, cars, houses and other noncash prizes.
Q. I inherited a tenement and those tenants who I haven’t evicted are now paying rent to me. Do I have to report this?
If property you receive this way later produces income such as interest, dividends or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited or distributed to you, that income is also taxable to you. If the gift, bequest or inheritance is the income from the property, that income is taxable to you.
Q. I sold my comic book collection. Do I have to report this?
If you collect stamps, coins or other items as a hobby for recreation and pleasure, and you sell any of the items, your gain is taxable as a capital gain. However, if you sell items from your collection at a loss, you cannot deduct the loss.
Q. I am a street pharmacist and all my income is cash. Do I have to report this?
Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Q. I’m a doctor, and pharmaceutical companies pay me incentives to push their drugs. Do I have to report this?
You must include kickbacks, side commissions, push money or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
Q. I flashed my breasts at a wet t-shirt contest hosted by WTIT in a Miami Beach bar during spring break and won a prize. Do I have to report this?
If you win a prize in a lucky number drawing, television or radio quiz program, beauty contest or other event, you must include it in your income. For example, if you win a $50 prize in a photography contest, you must report this income on Form 1040, line 21.
Q. I won the Nobel Peace Prize (in addition to being Time Magazine’s 2006 Person of the Year). Do I have to report this?
If you were awarded a prize in recognition of accomplishments in religious, charitable, scientific, artistic, educational, literary or civic fields, you generally must include the value of the prize in your income.
See Publication 525 for more information.
Q. I saw my girlfriend on America’s Most Wanted and Geraldo at Large and ratted her out to the police. I collected a sizable reward for material information leading to an arrest. Do I have to report this?
If you receive a reward for providing information, include it in your income.
Q. I bought art depicting dogs playing poker several years ago and sold the work this year to a rich idiot for a nice profit. Do I have to report this?
If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry or silverware, your gain is taxable as a capital gain. Report it on Schedule D (Form 1040). You cannot deduct a loss… However, if you sold an item you held for investment, such as gold or silver bullion, coins or gems, any gain is taxable as a capital gain, and any loss is deductible as a capital loss.
Q. I found a bunch of LCD and plasma HDTVs which must have fallen off a truck. I sold a few out of the back of my own truck. Do I have to report this?
If you steal property, you must report its fair market value in your income in the year you steal it unless, in the same year, you return it to its rightful owner.
On television the other night, some characters seemed excited because they were about to rob some individual they call “McJagger,” which I can only assume is some kind of throwback to “MacGyver.” I wasn’t really watching the show, but if they were successful, they should report their found income to the IRS.