FlyerTalk Forums - View Single Post - Spending $250K for Centurion, How About IRS? Large Cash deposits out of your league?
Old Aug 17, 2010, 8:08 am
  #41  
FoundInRNO
 
Join Date: Sep 2009
Location: USA
Posts: 327
Originally Posted by boncovi
All points taken except this. How can one avoid taxes by structuring transactions below 10K? When you go over 10K, you don't get taxed. It just gets reported to the government.

You don't set yourself up as a reseller, you avoid tax, that's another story. I just couldn't make connection between depositing below 10K and avoiding tax.
You would owe the taxes as a reseller on any fees you earn, regardless of the $10K limit. By not paying the taxes and keeping your transactions smaller than the reporting limit, the IRS would assume that you're operating UTR. Other issues that start to open up are "co-mingling of personal and business funds"...

Seems like a lot of heartache and BS to get a credit card. Work harder at something else and I bet the card will come to you when it's time.
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