As Juggler pointed out above, you're right about only having to pay taxes on the profit. Plus, you get to deduct any fees from that profit. So in the example, a $10 profit with $7 fees means just $3 in taxable income. It also means you should probably find more lucrative products to sell...
All of these ideas seem like a trip to the vet for a stomach x-ray and/or intestinal blockage waiting to happen. Using a sock is a mixed message, if you don't want your dog to chew your other socks. At the very least one should supervise your dog with these homemade toys.
Here's another one for you. My HR department today heard from the MOTHER of an applicant, inquiring as to why her child had not been hired. Can you say, "red flag"?
Sold my watch? I trust you meant for less than he paid, in which case, I don't see any tax due. Of course, I sell my 25 year old Rolex for a profit, there's tax due.
@d - No this idea isn't new, and I never claimed it to be. But given the few hundred comments here that suggest it might be a good idea, I'm not so sure it's entirely useless. It's up to the individual to make changes in their lives, and sometimes a tool like this can be the tipping point. It certainly helped me, and all I'm doing is writing from experience - and the heart.
@Mrs $ - I like the dorm room idea too! I'm going to give it a shot this summer. And in fact, I inadvertently stayed in a dorm room when I was in Edinburgh last summer...it was listed on one of the hostel booking sites. But I want to try calling universities directly to see if I can get good deals that way.
@Guest - Thanks for offering this resource and comments forum. Flyer Talk is one of the leading resources in frequent flyer miles and strategies. And as I said in the article, if you have the time and inclination, lurking forums like Flyer Talk can be an effective way to accomplish many of the strategies that are offered up with Travel Hacking Cartel. What Cartel membership does (that Flyer Talk doesn't do) is vet the opportunities for members, make them easy to understand and take advantage of, and Chris provides educational resources as well. If you don't have the time and inclination to travel up the frequent flyer mile learning curve yourself, then the Travel Hacking Cartel is perfect.
As a side note, since writing this post I've attained Silver Elite Status with Star Alliance, and joined a few extra programs through deals that will net me a few more perks and points.
actually credit card rewards are considered "rebates" and do not have to be reported. However, if you bought something and you got a rebate and then you want to use that item as a business expense or something you have to subtract the rebate from the cost basis of the item.
Yes, I have used CraigsList. I bought a gorgeous dining room table, 6 chairs and a buffet AND I got them to deliver it. Two months later I bought a chandelier from another Craigslist seller -- and it matches the dining room set perfectly.
Yes, I actually think it's kind of a fine line in terms of following up. Someone recently asked my advice on how to follow up on a job in which they hadn't heard back one way or another - we painstakingly crafted a friendly letter thanking the HR rep for the opportunity to talk, and lo and behold, the company responded! They had just been really busy.
GREAT point! I definitely simplified it to provide an easy example that everyone can relate to, but there's much more to it as you point out. If you're selling things on eBay like a business, know the rules!
The only section I have difficult with is following up personally after submitting an online application. This can be a sign of a desperate person, and if you are, Im sorry, but they dont need to know that. HR can take an excruciatingly long time to review and to answer back, it goes through many levels of people. Keep in mind that, yes they may miss your resume on the first pass, but if you are too eager, or perceived as an annoyance, that too could cause trouble!
@IPLAID - To be fair, banks cant give free money to their customers, because it needs to go back to their owners, the shareholders. Same group of people see the returns, it's just that they are two different classifications.
That being said... the big banks are pretty much evil. They truly exist because of the capital they hold... smaller banks and credit unions dont have the funds to lend out like the larger institutions do. However, in our case, you really dont need to be affiliated with a bank period. Credit unions will suffice and excel in every single aspect!
Wait a second, so are you saying if a win a gift card to Best Buy in a company raffle, I need to pay taxes on that?
While it might be interesting, in reality, most people are not going to be paying taxes on income unless it's their primary source. There is absolutely no way the government has the resources to track every teenager's income from babysitting or mowing lawns. My wife probably made $800 last year from babysitting, all cash. No way that is going into our taxes.
You oversimplified the example about selling stuff on eBay. If I buy something for $100, and later sell it on eBay for $90 (used) I do not owe any taxes on that amount. I already paid taxes on the money I spent to buy it. However if i sell it for $110, I would owe taxes on the $10 extra income ($100 already paid taxes on...so $10 left to pay taxes on).
If you sell enough on eBay that you treat it like a sole proprietorship or something like that then likely you'd also be deducting fees out of your income stream. So if you sold something for $110 that you only paid $100 for, but you also had $7 in fees, your actual taxed income from that sale would be only $3.
My credit union (secumd.org) is also constantly updating their online presence and have partnered with vendors to provide bill pay and other benefits where they are weekended. Almost anyone in Maryland can find a way to fit into the criteria.
And most credit unions have an ATM partnership program such as Allpoint that allows you to use any atm within the network. If I travel, I can find an ATM. I would say that actual branches would be the disadvantage. ATMs really are not a problem.
A sincere apology is also important. When rectifying mistakes, one must be genuine. The person receiving the apology will sense at once if you are sincere or not. We are not perfect and they will realize that. An honest mistake is an honest mistake. Own your mistake and they will understand.
As I am not fond of "exchanging" stuffs I bought with the old ones, I always try and remind myself to consider the purpose of each new item I find. Keeping in mind that my house can only take so much, I try to weigh its functionality. Whether it will actually lighten things up for me or just add up to my "cleaning" time. Great tips! :)
When you really want something, you don't have to go the extra mile. How hard can it really be to show sincerity and interest in something we want for ourselves? Looking up a company's background, making a cover letter, it's there. Hundreds of resources are out there and it's all for our taking. We just need to have the initiative to pursue what we want.
As Juggler pointed out above, you're right about only having to pay taxes on the profit. Plus, you get to deduct any fees from that profit. So in the example, a $10 profit with $7 fees means just $3 in taxable income. It also means you should probably find more lucrative products to sell...
All of these ideas seem like a trip to the vet for a stomach x-ray and/or intestinal blockage waiting to happen. Using a sock is a mixed message, if you don't want your dog to chew your other socks. At the very least one should supervise your dog with these homemade toys.
Excellent post, Andrea, as usual.
Here's another one for you. My HR department today heard from the MOTHER of an applicant, inquiring as to why her child had not been hired. Can you say, "red flag"?
Gawd.
Sold my watch? I trust you meant for less than he paid, in which case, I don't see any tax due. Of course, I sell my 25 year old Rolex for a profit, there's tax due.
@d - No this idea isn't new, and I never claimed it to be. But given the few hundred comments here that suggest it might be a good idea, I'm not so sure it's entirely useless. It's up to the individual to make changes in their lives, and sometimes a tool like this can be the tipping point. It certainly helped me, and all I'm doing is writing from experience - and the heart.
@Mrs $ - I like the dorm room idea too! I'm going to give it a shot this summer. And in fact, I inadvertently stayed in a dorm room when I was in Edinburgh last summer...it was listed on one of the hostel booking sites. But I want to try calling universities directly to see if I can get good deals that way.
@Guest - Thanks for offering this resource and comments forum. Flyer Talk is one of the leading resources in frequent flyer miles and strategies. And as I said in the article, if you have the time and inclination, lurking forums like Flyer Talk can be an effective way to accomplish many of the strategies that are offered up with Travel Hacking Cartel. What Cartel membership does (that Flyer Talk doesn't do) is vet the opportunities for members, make them easy to understand and take advantage of, and Chris provides educational resources as well. If you don't have the time and inclination to travel up the frequent flyer mile learning curve yourself, then the Travel Hacking Cartel is perfect.
As a side note, since writing this post I've attained Silver Elite Status with Star Alliance, and joined a few extra programs through deals that will net me a few more perks and points.
True, credit card rewards aren't taxable, but if you get a bonus for signing up for a certain card or referring a friend, those benefits are taxable.
Nice title, hehe, The best way I found is not use them period. Or obviously only for a few things so that paying them off is much easier.
Yes true, if it sounds too good to be true, it often is.
actually credit card rewards are considered "rebates" and do not have to be reported. However, if you bought something and you got a rebate and then you want to use that item as a business expense or something you have to subtract the rebate from the cost basis of the item.
Yes, I have used CraigsList. I bought a gorgeous dining room table, 6 chairs and a buffet AND I got them to deliver it. Two months later I bought a chandelier from another Craigslist seller -- and it matches the dining room set perfectly.
Yes, I actually think it's kind of a fine line in terms of following up. Someone recently asked my advice on how to follow up on a job in which they hadn't heard back one way or another - we painstakingly crafted a friendly letter thanking the HR rep for the opportunity to talk, and lo and behold, the company responded! They had just been really busy.
But I'd advise to never follow up more than once.
Unfortunately, you're right. But why do we feel like it's ok to hide money from the government when we're legally required to report it?
GREAT point! I definitely simplified it to provide an easy example that everyone can relate to, but there's much more to it as you point out. If you're selling things on eBay like a business, know the rules!
In the case of credit card rewards, the bank should issue a 1099-INT for the amount of any rewards or cash back bonuses. If not, ask them for one!
The only section I have difficult with is following up personally after submitting an online application. This can be a sign of a desperate person, and if you are, Im sorry, but they dont need to know that. HR can take an excruciatingly long time to review and to answer back, it goes through many levels of people. Keep in mind that, yes they may miss your resume on the first pass, but if you are too eager, or perceived as an annoyance, that too could cause trouble!
www.moneyistheroot.com
@IPLAID - To be fair, banks cant give free money to their customers, because it needs to go back to their owners, the shareholders. Same group of people see the returns, it's just that they are two different classifications.
That being said... the big banks are pretty much evil. They truly exist because of the capital they hold... smaller banks and credit unions dont have the funds to lend out like the larger institutions do. However, in our case, you really dont need to be affiliated with a bank period. Credit unions will suffice and excel in every single aspect!
www.moneyistheroot.com
I love that idea. I have a bunch of those. I've never seen that pretty print though. Where did you get that one in the picture?
Wait a second, so are you saying if a win a gift card to Best Buy in a company raffle, I need to pay taxes on that?
While it might be interesting, in reality, most people are not going to be paying taxes on income unless it's their primary source. There is absolutely no way the government has the resources to track every teenager's income from babysitting or mowing lawns. My wife probably made $800 last year from babysitting, all cash. No way that is going into our taxes.
You oversimplified the example about selling stuff on eBay. If I buy something for $100, and later sell it on eBay for $90 (used) I do not owe any taxes on that amount. I already paid taxes on the money I spent to buy it. However if i sell it for $110, I would owe taxes on the $10 extra income ($100 already paid taxes on...so $10 left to pay taxes on).
If you sell enough on eBay that you treat it like a sole proprietorship or something like that then likely you'd also be deducting fees out of your income stream. So if you sold something for $110 that you only paid $100 for, but you also had $7 in fees, your actual taxed income from that sale would be only $3.
My credit union (secumd.org) is also constantly updating their online presence and have partnered with vendors to provide bill pay and other benefits where they are weekended. Almost anyone in Maryland can find a way to fit into the criteria.
And most credit unions have an ATM partnership program such as Allpoint that allows you to use any atm within the network. If I travel, I can find an ATM. I would say that actual branches would be the disadvantage. ATMs really are not a problem.
A sincere apology is also important. When rectifying mistakes, one must be genuine. The person receiving the apology will sense at once if you are sincere or not. We are not perfect and they will realize that. An honest mistake is an honest mistake. Own your mistake and they will understand.
As I am not fond of "exchanging" stuffs I bought with the old ones, I always try and remind myself to consider the purpose of each new item I find. Keeping in mind that my house can only take so much, I try to weigh its functionality. Whether it will actually lighten things up for me or just add up to my "cleaning" time. Great tips! :)
When you really want something, you don't have to go the extra mile. How hard can it really be to show sincerity and interest in something we want for ourselves? Looking up a company's background, making a cover letter, it's there. Hundreds of resources are out there and it's all for our taking. We just need to have the initiative to pursue what we want.