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Post by Yankeefan1955 on Jul 21, 2015 5:53:12 GMT -5
Why is it ok to have a garage sale, but kids can't have a lemonade stand?
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Post by boots on Jul 21, 2015 7:36:55 GMT -5
They assume the adults will claim it on their taxes.
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Post by porcelaindoll on Jul 21, 2015 11:49:17 GMT -5
They assume the adults will claim it on their taxes. Just like we claim lottery winnings, right? |
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Post by Madam Moriarty on Jul 21, 2015 13:04:34 GMT -5
They assume the adults will claim it on their taxes. Just like we claim lottery winnings, right? HAHA |
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Post by True Patriot on Jul 21, 2015 18:32:24 GMT -5
Most things at a garage sale are sold for less than their acquisition cost and are purchased by those less fortunate.
There would be no reason to report the sales on a tax return unless there is a capital gain.
In addition, it is 'green' to reuse items.
Lemonade stands presumably have the potential of making a profit and promote entrepreneurism among youth.
In addition, they use precious resources like water that should be available to all.
If it were not for government, setting up a lemonade stand and making a profit would not be possible.
As any anti-capitalist Liberal will tell you 'profit' is a four-lettered word and reduces reliance on the benevolence of government.
If permitting, inspections and reporting requirements are needed to discourage such anti-social activities then so be it.
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Post by teteri66 on Jul 21, 2015 19:01:26 GMT -5
^Never thought about it like that.
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Post by TheOcelot1978 on Jul 22, 2015 5:48:24 GMT -5
okay then why can girl scouts sell cookies, and what about the kids who walk around the mall selling candy for their basketball team?
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Post by Livesindaw00ds on Jul 22, 2015 5:48:34 GMT -5
^Those profits go to the organization not the indidivual
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Post by TheOcelot1978 on Jul 22, 2015 5:49:10 GMT -5
Fine fine
But really... make Kids cry over 25 cents a cup?
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Post by Livesindaw00ds on Jul 22, 2015 5:49:37 GMT -5
I personally think it's a waste of police time, but I'm not there to judge the situation.
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Post by Vladimir Kortensky on Jul 22, 2015 10:54:17 GMT -5
Good info Patriot. Did not think of any of this.
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Post by Topanga on Jul 22, 2015 17:41:03 GMT -5
I always used to wonder this..
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Post by Eric Matthews on Jul 22, 2015 20:29:17 GMT -5
What about when you sell your car?
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Post by True Patriot on Jul 22, 2015 23:47:31 GMT -5
The same applies to a car.
If you buy a car for $10,000 and sell it for $9,000 you have a capital loss of $1,000 and no tax is due.
If you sell the car for $11,000 then you have a capital gain of $1,000 and that $1,000 is reportable.
This assumes you have not depreciated the car for business purposes.
With regard to charitable contributions such as buying Girl Scout cookies...
Many people would deduct the entire amount paid, but that would be wrong.
The charitable deduction is the amount that exceeds the fair market value of the product or service provided by a federally approved charitable organization.
If the cookies are worth $20 and you pay $20 or less then you have no charitable deduction.
If the cookies are worth $10 and you pay $20 dollars then your charitable contribution is $10.
However...You don't really get to reduce your income by $10.
For most people, only 50% of the amount over the value of the cookies is added to their itemized deductions depending on the nature of the contribution and other factors, so the amount you actual get to add to your itemized deductions is $5.
Even then, unless your total itemized deductions exceed the standard deduction, there is no benefit.
See how simple it is?...LMAO
Now suppose your itemized deductions would otherwise exceed the standard deduction and you are able to deduct 50% of your contribution; in that case, your income (not your tax) would be reduced by $5.
Depending on your marginal tax rate a portion of that $5 would be kept in your pocket as opposed to being paid to the government.
For example, if your marginal rate after deductions is 40% then you would pay $2 less in taxes (40% of $5).
If you think about it, your not having to pay $2 means that government revenues are reduced by $2.
In other words, the government has reimbursed you for $2 dollars of your $20 contribution for all practical purposes or has indirectly contributed $2 to the Girl Scouts of America as opposed to being in the treasury to do the things that the federal government is actually authorized by the Constitution to do.
Making donations to the Girl Scouts (or any charity) is not one of the enumerated powers granted to the federal government by the Constitution, but it's a great way to manipulate society with false perceptions.
By the way...Suppose you gave $10,000 directly to a family to help them make ends meet because of the death of the family's breadwinner after winning the lottery, having never played before.
How much would our benevolent government allow you to deduct?
If you said zero then you are almost correct...You forget about the taxes that would have to be paid on the winnings.
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Post by Shadow on Jul 23, 2015 4:31:30 GMT -5
^Speculation. As far as I can tell, lemonade stands are not illegal. (I admit I haven't checked every state) A permit may be required, but that's far different than being illegal.
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