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View Diary: Reverse tax shelters to maximize your Obamacare subsidies (Updated) (27 comments)

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  •  And hey (2+ / 0-)
    Recommended by:
    i dunno, wilderness voice

    I think that that forgiven debt is also income.  So, bet spouse $1,000.  Spouse wins, gets a note for that value, reports $1,000 in gambling income.  Forgives debt, you get $1,000 in debt forgiveness income.  Repeat as necessary.

    Like you, I'm just spitballing and not giving advice, but I think that's what I remember as far as how this works.

    I wonder how often anyone gets in trouble for overstating their income.  

    •  I wonder... (1+ / 0-)
      Recommended by:
      i dunno
      I wonder how often anyone gets in trouble for overstating their income.
      Is there even a penalty for overstating income?  If you overstate your income and pay the necessary taxes then is there a fine?  Do you get your overpaid taxes back?

      Republican tax policies have led to financial conditions which have caused Republicans to demand cuts to programs they have always opposed.

      by AppleP on Tue Oct 08, 2013 at 09:50:54 AM PDT

      [ Parent ]

      •  There may not be an IRS tax penalty (1+ / 0-)
        Recommended by:
        MarEng

        but one does need to make sure to not commit fraud with regard to the ACA.

        •  It would be easy to (1+ / 0-)
          Recommended by:
          i dunno

          cheat without the chance of getting caught.  Get a job that pays in tips and over-report your tips.  Start a business and report your sales income from garage sales or Craigslist.

          Heck, you can mow your neighbor's lawn and have him mow yours.  Report the "income" and pay the taxes.

          Bottom line is you won't be able to stop this, which is a good thing.  It is time lower income people get a break and may cause the Politicians to throw up their hands and give us a single payer system.

          Republican tax policies have led to financial conditions which have caused Republicans to demand cuts to programs they have always opposed.

          by AppleP on Tue Oct 08, 2013 at 04:48:56 PM PDT

          [ Parent ]

          •  It's not "income" ... (0+ / 0-)
            Heck, you can mow your neighbor's lawn and have him mow yours.  Report the "income" and pay the taxes.
            As I understand it, that is not "income" -- it is income.  And you are legally obligated to report it.  It's not cheating, it is the law.

            Similar with gambling winnings.  You are legally obligated to report gambling winnings even if you have no documentation.  You may not report gambling losses unless you have documentation (and choose to itemize).

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