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Auto-surf site income.....how to report it?

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silentrascal

Junior Member
What is the name of your state? North Carolina


How exactly would I go about reporting my earnings from investments made into an auto-surfing site, i.e. 12dailypro or something similar? What would be my tax responsibility?
 


abezon

Senior Member
Is the income employment income for which you performed services or is it more like a dividend, where you invest & hope to get enough money back to keep from feeling like an idiot? You file Schedule C & pay SE taxes on the first type, & report the other as investment income. How is the company going to report the income to you? That would be the default position to take.
 

abezon

Senior Member
Then you hope the company reports it that way. Can you get your money back? If you can, the payments are ordinary investment income (probably non-qualified dividends). If you'll never see the original $$ again & are just hoping the income exceeds what you paid, some of the payments are return of capital and are not taxable until you have recovered your investment. The rest are taxed as capital gains. You'll need to consult the IRS for help determining how to split the money.
 

silentrascal

Junior Member
Actually, the company doesn't report anything for you. They simply provide a statement of all of your earnings that you can download and will have to keep for your tax records. It's up to you to report what you make. Wouldn't I simply be able to list it all as investment income?
 

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