Tax law question for future lawyer Deuce

[buztah]

Since SBR points can be used to purchase goods do they constitute commercial paper and if so what are the ramifications of such vis a vis the filing of income taxes in the State of Michigan? Be sure to distinguish the significance, if any, of points obtained from winning wagers versus those merely accumulated from regular posting or as gifts.

Extra credit: If SBR points are bequeathed must the recipient concern him/herself with taxes or is this a moot point?

Tanx, pal.

[fiveteamer]

Duece one day hopes to be an Ambulance Chaser. Fukk tax law.

[dmtrader]

Deuce - you are studying tax law?

You lucky stiff! I pay those guys some serious $ every year.

[buztah]

Kok is on Law Review. I'm sure he will be able to provide a convincing answer.

[BGS 9.5]

Are you fukking serious with this post? I am a CPA and I just

[buztah]

No offense but we need a tax lawyer to field the legal issues posed here. Very complex.

[BGS 9.5]

No offense but we need a tax lawyer to field the legal issues posed here. Very complex.

I do take offense, and you need nothing of the sort. This is completely immaterial, and you should be ashamed for even questioning me.....

[buztah]

BG, we need Deuce to work this one out. The last thing we need is tax issues come spring.

[BGS 9.5]

BG, we need Deuce to work this one out. The last thing we need is tax issues come spring.

Hammah

[Deuce]

Just create Buztah LLC. and write all of them off as expenses.

[poker_dummy101]

I thought deuce fixed tires for a living?

[jjgold]

Deuce is not a lawyer Buzzy

He fukkin runs errands there delivering packages, got axed from the tire job

[buztah]

Deuce, would I declare SBR points purchases a "use tax" if I were in MI?

If you don't know, maybe Loshak's lawyer can assist. SBR is an "out of state seller," no? Scroll down to the bolded section. These SBR points are going to cause a lot of posters to be phucking audited next year. What a nightmare!

*****************

Michigan Department of Treasury (Rev. 9-08), Page 1 Issued under authority of
Public Act 281 of 1967. 2008 MICHIGAN Individual Income Tax Return MI-1040
Return is due April 15, 2009.
Type or print in blue or black ink. Print numbers like this: 0123456789 - NOT like this: 1 4
PLACE LABEL HERE
41. Filer’s First Name M.I. Last Name 42. Filer’s Social Security No. (Example: 123-45-6789)
If a Joint Return, Spouse’s First Name M.I. Last Name
43. Spouse’s Social Security No. (Example: 123-45-6789)
Home Address (No., Street, P.O. Box or Rural Route)
City or Town State ZIP Code 44. School District Code (5 digits - see p. 49)
MILITARY FAMILY RELIEF FUND
CHILDREN’S TRUST FUND
CHILDREN OF VETERANS TUITION GRANT PROGRAM
You may contribute to the Military Family Relief Fund, Children’s Trust Fund and the
Children of Veterans Tuition Grant Program on lines 21, 22, and 23 of this form.
45. STATE CAMPAIGN FUND Yes No 46. FARMERS, FISHERMEN OR SEAFARERS
Check this box if you (or your spouse, if filing
a joint return) want $3 of your taxes to go to
this fund. This will not increase your tax or
reduce your refund.
a. You
Check this box if 2/3 of your income is from
farming, fishing or seafaring.
b. Spouse
47. FILING STATUS. Check one. 48. RESIDENCY. Check all that apply.
a. Single a. Resident
* If you check box “c,” complete line
3 and enter spouse’s name below: * If you check box “b” or
“c,” you must complete
and attach Schedule NR.
b. Married, filing jointly b. Nonresident*
c. Married, filing separately* c. Part-Year Resident*
49. EXEMPTIONS
a. Number of exemptions you claimed on your 2008 federal return.................................. 49a. x $3,500 00
b. Number of individuals 65 or older who qualify for a special exemption......................... 49b. x $2,200 00
c. Number of individuals who qualify for one of the following special exemptions:
deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled 49c. x $2,200 00
d. Number of children ages 18 and under you claimed as Michigan exemptions............. 49d. x $600 00
e. Number of qualified disabled veterans................................ ........................................ .. 49e. x $250 00
f. If your unemployment compensation is 50% or more of your Adjusted Gross Income
(amount claimed on line 10) check the box and enter $2,200.................................. ..... 49f. (a) $2,200 00
g. If someone else can claim you as a dependent, check the box, complete
Worksheet 2 on p.10, and enter the amount from the worksheet............................... ... 49g. (a) 00
h. Add lines 9a, 9b, 9c, 9d, 9e, 9f and 9g. Enter here and on line 15 ........................................ ................................ 9h. 00
10. Adjusted Gross Income from your U.S. Forms 1040, 1040A, 1040EZ or 1040NR (see p. 10)..... 410. 00
11. Additions from Michigan Schedule 1, line 7. Attach Schedule 1....................................... ............... 411. 00
12. Total. Add lines 10 and 11...................................... ........................................ .................................. 12. 00
13. Subtractions from Michigan Schedule 1, line 21. Attach Schedule 1....................................... ....... 413. 00
14. Income subject to tax. Subtract line 13 from line 12. If line 13 is greater than line 12, enter “0”..... 14. 00
15. Exemption allowance. Enter the amount from line 9h or Schedule NR, line 20............................ 415. 00
16. Taxable income. Subtract line 15 from line 14. If line 15 is greater than line 14, enter “0”.............. 16. 00
17. Tax. Multiply line 16 by 4.35% (0.0435). Enter here and carry amount to line 18........................... 17. 00
a. Routing
Transit
Number
b. Type of
4 Account DIRECT DEPOSIT
Deposit your refund directly into
your bank account! See p. 11
and complete a, b and c.
4 (1) Checking (2) Savings
c. Account
Number 4
+ 0000 2008 05 01 27 4 Continue and sign on page 2.
2008 MI-1040, Page 2 Filer’s Social Security Number
18. Enter amount of tax from line 17...................................... ........................................ ........................ 18. 00
19. Total Nonrefundable Credits. Attach Schedule 2....................................... ........................................ ........... 19. 00
20. Income tax. Subtract line 19 from line 18. If line 19 is greater than line 18, enter “0”...................... 420. 00
21. Military Family Relief Fund. Enter your contribution amount ($1 minimum) ........................................ ......... 421. 00
22. Children’s Trust Fund. Enter your contribution amount ($5 minimum)................................ .......................... 422. 00
23. Children of Veterans Tuition Grant Program. Enter your contribution amount ($2 minimum) ...................... 423. 00
24. Additional Voluntary Contributions from Form 4642, line 6. Attach Form 4642.................................... ........ 24. 00
25. USE
TAX
Enter use tax due on Internet, mail order or other out-of-state purchases from
Worksheet 1, line 3, p. 9. .............. 425. 00
26. Add lines 20, 21, 22, 23, 24 and 25...................................... ........................................ .................... 26. 00
REFUNDABLE CREDITS AND PAYMENTS
27. Property Tax Credit. Attach MI-1040CR or MI-1040CR-2....................................... ....................................... 427. 00
28. Farmland Preservation Credit. Attach MI-1040CR-5....................................... ........................................ ...... 428. 00
29. Qualified Adoption Expenses. Attach U.S. Form 8839 and MI-8839.................................... ......................... 429. 00
30. Stillbirth Credit. Enter amount from Worksheet 3, p. 11...................................... ........................................ .. 430. 00
31. a. Federal Earned Income Tax Credit.................................. ............. 31a. 00
b. Michigan Earned Income Tax Credit. Multiply line 31a by 10% (0.10).................................. .................. 431b. . 00
32. Michigan tax withheld from Schedule W, line 3. Attach Schedule W....................................... ...................... 432. 00
33. Estimated tax, extension payments and 2007 credit forward ........................................ .............................. 433. 00
34. Total refundable credits and payments. Add lines 27, 28, 29, 30, 31b, 32 and 33 .......................... 34. 00
REFUND OR TAX DUE
00
4
Office Use Only
435.
35. If line 34 is less than line 26, subtract line 34 from line 26.
Include interest and penalty if applicable (see p. 11)............... PAY
36. If line 34 is greater than line 26, subtract line 26 from line 34. You overpaid this amount ............... 36. 00
37. Amount of line 36 to be credited to your 2009 estimated tax for your 2009 tax return.................................. 437. 00
38. Subtract line 37 from line 36...................................... ........................................ .............REFUND 438. 00
Deceased Taxpayer. If Filer and/or Spouse died after December 31, 2007, check the
appropriate box below.
Preparer Certification. I declare under penalty of perjury that
this return is based on all information of which I have any knowledge.
4 Filer is Deceased 4 Spouse is Deceased 4 Preparer’s PTIN, FEIN or SSN
Taxpayer Certification. I declare under penalty of perjury that the information in this return
and attachments is true and complete to the best of my knowledge. 4 Preparer’s Business Name (print or type)
Filer’s Signature Date
Spouse’s Signature Date Preparer’s Business Address (print or type)
4 I authorize Treasury to discuss my return with my preparer. Yes No
Refund, credit, or zero returns. Mail your return to: Michigan Department of Treasury, Lansing, MI 48956
Pay amount on line 35. Mail your check and return to: Michigan Department of Treasury, Lansing, MI 48929
Make your check payable to “State of Michigan.” Print your Social Security number and “2008 income tax” on the front of your check. If paying on
behalf of another taxpayer, write the taxpayer’s name and Social Security number on the check. Do not staple your check to the return. Keep a copy
of your return and all supporting schedules for six years. To check the status of your refund, have a copy of your MI-1040 available when you visit:

https://www.michigan.gov/iit

+ 0000 2008 05 02 27 2
Every state that has a sales tax has
a companion tax for purchases
made outside that state, by catalog
or over the Internet. In Michigan,
that companion tax is called the
“use tax,” but might be described
more accurately as a remote sales
tax because it is a 6 percent tax
owed on purchases made outside of
Michigan.
Use tax is due on mail order and
Internet purchases made from
out‑of‑state sellers as well as
purchases while traveling in foreign
countries when the items are to
be brought in to Michigan. Use
tax must be paid on the total price
(including shipping and handling
charges).
How to Pay Use Tax
Use Worksheet 1 below to calculate
your tax and enter the amount of tax
due on line 25 of MI-1040.
Worksheet Calculation
Line 1: For purchases of $0 - $1,000,
if you know the amount, multiply
your total purchases times 6 percent
(0.06) and enter the amount on Line
1, or
For purchases under $1,000, if
you have incomplete or inaccurate
receipts to calculate your purchases,
you may use Table 1 - Use Tax
to estimate your taxes. (See the
example below.)
Line 1 should contain a number
unless you made no purchases under
$1,000 subject to the use tax. If we
later determine that you owe use
tax, you may be subject to penalty
and interest.
Line 2: In all cases, if a single
purchase is $1,000 or more, you
must pay 6 percent use tax on those
purchases.
Example: Kurt ordered a computer
from a catalog retailer in New York
for $1,437.50. Kurt also purchased
items over the Internet for less than
$1,000 during the year, but lost his
receipts. He is sure he did not pay
Michigan sales tax. Kurt’s AGI
is $46,500. Kurt would complete
Worksheet 1 as follows:
Line 1: Kurt selects $23 from
the table based on his AGI....$23.00
Line 2: Kurt enters
$1,437.50 x 6 percent............ $86.25
Line 3: Total use tax due ...$109.25
Kurt would enter $109 (no cents) on
his 2008 MI-1040, line 25.
Use Tax
TABLE 1 - USE TAX
AGI* Tax
$0 - $10,000................................. .$3
$10,001 - $20,000.........................$8
$20,001 - $30,000.......................$13
$30,001 - $40,000.......................$18
$40,001 - $50,000.......................$23
$50,001 - $75,000.......................$31
$75,001 - $100,000.....................$44
Above $100,000..... Multiply AGI by
0.05% (0.0005)
* AGI from MI-1040, line 10.
Estimating your taxes does not
preclude Treasury from auditing
your account. If additional tax is
due, you may receive an assessment
for the amount of the tax owed, plus
applicable penalty and interest.
Use Tax on the Difference
If you paid at least 6 percent to
another state on your purchase, you
do not owe use tax to Michigan. If
you paid less than 6 percent, you
owe the difference.
Note: The full 6 percent use tax
is owed on purchases made in a
foreign country.
For more information, visit
WORKSHEET 1 - USE TAX www.michigan.gov/taxes.
Line 1: Itemized purchases of $0 to $1,000 x
6 percent (0.06) OR Use Tax table amount.............................. $ ______
Line 2: Single purchases $1,000 or more x 6 percent (0.06).... $ ________
Line 3: Total Use Tax Due (total of Lines 1 and 2).................. $ ________
Enter amount from Line 3 above on your 2008 MI-1040, Line 25. If the
amount on Line 3 is 0, enter “0” on your 2008 MI-1040, Line 25.

[Deuce]

Buzzy,

They are gifts that are not taxable. Many ways around it. No way to say it was "purchased" when money was not given. I would win this running in the courts system.

[Fishhead]

Report it and write off.......simple.

Your points turn into sportsbook cash starting next month.

[buztah]

Buzzy,

They are gifts that are not taxable. Many ways around it. No way to say it was "purchased" when money was not given. I would win this running in the courts system.

What about the out of state seller issue and the use tax? SBR is not a MI corporation.

[Deuce]

What about the out of state seller issue and the use tax? SBR is not a MI corporation.

What is being sold? There was no point of sale when cash was rendered for product. It was a "gift" for putting in your time and efforts.

[buztah]

But are the points, once used to purchase goods from an out of state seller, in essence commercial paper?

Deuce, I don't know, pal. We just need to have these answers ready come audit time. What you're posting here will never satisfy a crusty ole accounting phuck. You better run the whole scenario by a tax law prof.

[Deuce]

But are the points, once used to purchase goods from an out of state seller, in essence commercial paper? Deuce, I don't know, pal. We just need to have these answers ready come audit time. What you're posting here will never satisfy a crusty ole accounting phuck. You better run the whole scenario by a tax law prof.

The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.

1. Gifts that are not more than the annual exclusion for the calendar year.
2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).
3. Gifts to your spouse.
4. Gifts to a political organization for its use.

In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.

[Deuce]

SBR is writing the products off as gifts or business expenses. It's that simple.

[buztah]

Deuce, for your sake and the sake of every MI poster, let's hope the tax man is as lackadaisical with this issue as you are. You've made a piss poor attempt to circumvent the issues.

[Deuce]

Deuce, for your sake and the sake of every MI poster, let's hope the tax man is as lackadaisical with this issue as you are. You've made a piss poor attempt to circumvent the issues.

Buzzy you kok phuck, I am getting Pizza not NCAA Final Four packages. Unreal. No one will ever know you dunce.

[Fishhead]

This is the samething as recieving gifts/food comps from a slot club/casino............they are not taxable items.

Relax folks and enjoy your pizzas.

[Deuce]

This is the samething as recieving gifts/food comps from a slot club/casino............they are not taxable items. Relax folks and enjoy your pizzas.

Finally someone that knows wtf is going on. Unreal.

Buzzy,

Go shove needles in your ayz you kok phuck.

[buztah]

Deuce, save your pizza receipts, pal.

****************

Every state that has a sales tax has
a companion tax for purchases
made outside that state, by catalog
or over the Internet. In Michigan,
that companion tax is called the
“use tax,” but might be described
more accurately as a remote sales
tax because it is a 6 percent tax
owed on purchases made outside of
Michigan.
Use tax is due on mail order and
Internet purchases made from
out‑of‑state sellers as well as
purchases while traveling in foreign
countries when the items are to
be brought in to Michigan. Use
tax must be paid on the total price
(including shipping and handling
charges).
How to Pay Use Tax
Use Worksheet 1 below to calculate
your tax and enter the amount of tax
due on line 25 of MI-1040.
Worksheet Calculation
Line 1: For purchases of $0 - $1,000,
if you know the amount, multiply
your total purchases times 6 percent
(0.06) and enter the amount on Line
1, or
For purchases under $1,000, if
you have incomplete or inaccurate
receipts to calculate your purchases,
you may use Table 1 - Use Tax
to estimate your taxes.

[buztah]

Deuce, the suspense must be killing our prudent MI posters here. Since the points are redeemed via an out of state corporation (SBR) are they in fact the "seller" via the internet or is this point moot? If SBR is not the seller, but the auditor in fact considers the pizza place to be the seller, what happens if said pizza shop is across the border (MI/OH)? Some of our posters live in MI but have pizzas delievered from Ohio.

Are we now into "interstate commerce?" Jesus Christ my head hurts! Get a constitutional lawyer!