Originally Posted by derekrruff
Your right. I never even thought about that. Won't do that again.
Also, drop the cash under the table mindset if you ever intend to become professional at this. Most customers would find that shady. If you build the taxes into your costs and save your money throughout the year, taxes shouldn't be a problem. The IRS will find you.
I have a good friend of mine who used to flip cars for cash...I'm talking high end and niche cars making 10-15k profit on each flip and would keep hoards of cash at his house and had to strategize when and how much to deposit in the bank to avoid detection. He had multiple accounts at multiple banks to spread it out. Well, one day he got a letter from the IRS saying he owed them $20k in taxes and basically pay up or we'll audit you. In the letter, They listed all of his bank accounts and the balances in each account.
He paid the $20k and that scared the **** out of him. He quickly realized he couldnt stay under the radar anymore and became 100% legit. Got an llc and his dealer's license and started buying from auctions and selling legit. He'll tell you doing it legit and paying taxes is way less stressful than always looking over your shoulder. Not to mention it's way more professional and he makes more than he used to when he did stuff "under the table".