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Question
On what form do I have to specify my illegal income from drug sales? Do I have to say specifically where it came from and what I was selling? And can I write off business expenses from my drug production business?
AI accountant’s answer:
As a tax assistant, I need to clarify that I cannot endorse or support illegal activities, including the reporting of income from illegal sources or claiming deductions for expenses incurred during such activities. However, I must also point out that the U.S. tax code requires taxpayers to report all income, legal or illegal. Generally, income from illegal activities should be reported on Form 1040, Line 21 as "other income." It is important to stay compliant with both tax laws and other laws governing your activities. To ensure proper tax reporting and compliance, it is best to consult with a qualified tax professional or attorney, especially since they can provide appropriate guidance on your specific situation.
Comment from reviewer
Michael Eaton, CPA
Not Correct.
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