Originally Posted by
satman40
When audited they want to see your deposits, what you started the year with, deposits are considered income, unless you can show the money was a gift,
They will call your mother for confirmation if the gift, and determine if it was paid back,
Keep your records, yet you will still pay to defend your self..
Thats rather annoying and i say this because i do a lot of honest legit craigslist selling. For example i just sold a expensive DJ set that was close to 6k new that i sold for 4k. If i was to deposit this into my account it was not income that would be taxed since i already paid tax on this set when it was brand new... Plus i take a 2k hit on the sale.
Or when i sell my iPhone each year, i just sold my wifes for 430 and mine for 541.. I deposit this into my account then we use it to get the new ones.. there is so much of this that i dont know how on can prove i sold 4k DJ kits on craigs list along with many other things...