Stole something? IRS says stolen property and bribes must be reported as income

Did you steal a car in 2021? How about taking a bribe? If you did, the IRS says to make sure you report it on your taxes.  

Those provisions went viral Monday following a tweet alerting taxpayers to those somewhat surprising requirements to note the value of your ill gotten gains. 

“Tax szn is around the corner,” read the tweet from @litcapital. “Remember to report your income from illegal activities and stolen property to the IRS.”

The requirements can be found at IRS.gov amid other missives to report income earned from jobs in the gig economy and what to do about taxable alimony payments. 

“If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,” read the provision for stolen property.’

What if you’re dealing drugs or caught up in other crimes?

In that case, the IRS publication says jot your earnings on line 8z, Schedule 1 of your 1040 form, “or on schedule C … if from your self-employment activity.”

And don’t forget to report any bribes or kickbacks you took in the course of doing business.

The kickbacks also go on Schedule 1 or Schedule C, while the IRS says bribes should simply be included in your income. 

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Author: HP McLovincraft

Seeker of rabbit holes. Pessimist. Libertine. Contrarian. Your huckleberry. Possibly true tales of sanity-blasting horror also known as abject reality. Prepare yourself. Veteran of a thousand psychic wars. I have seen the fnords. Deplatformed on Tumblr and Twitter.

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