81mm wrote:
Looks guys.., why start calling names.., I mean, does it make your stance
any stronger..?? Frankly, this tread started out with the question of
buying an aircraft and paying a tax. Both of you (and the other bystander)
have moved the subject over to a discussion of an "income" tax, as apposed
to a simple fee, licensing, and/or a property tax issue.., and you are
correct..! However, the subject of whether an "individual", as opposed to a
"business".., has a "liability" to pay a tax on the smiple purchase and
operation of an aircraft is getting your balls in an uproar. True again,
the 16th amendment (as ratified.., another subject?) does give congress the
authority to levy and collect a tax on "incomes", but "income" in this case
is NOT derived from the purchase or ownership of an aircraft..., unless it
is used in a business..!! Oh, and by the way, I have a copy of the
incorporation papers for the IRS in the state of Delaware in front of me as
I write (smile) which gives it some authority to act as an "agency" with
limited powers to collect taxes with regards to alcohol, tobacco, and
firearms since it's realignment with the DEA, BATF some years ago. Please
keep searching the IRS code for the definition of "income"..!! Now.., back
to the subject 45 treads back..., and no name calling..!!

Selling something for more than you paid for it is called making a profit.

Profit is taxable as income for individuals as well as businesses.

What part of this are you struggling to understand?

In the real world very few items purchased by individuals are ever
sold for a profit and the big ticket items that are likely to are
generally registered in some manner making tax avoidance difficult.

If you buy an old chair at the Goodwill store for $25 and it turns out
to be a rare antique worth $25,000, you owe the IRS (and most likely
your state) taxes on $24,975 of income.

The fact that the odds of anyone ever knowing about it are just about
nil (unless you have a big mouth, **** someone off, and they turn
you in for the reward) does not mean that you are not legally liable
for the tax.

--
Jim Pennino

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