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1099s and selling your unwanted golf equipment


cnosil

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1 hour ago, Shapotomous said:

What my mind focuses on when i read that sentence and I get all twitchy!!!   😱

 

What i seriously wonder about is the decision to use $600 as a threshold.  How efficient can it be to have the IRS keeping track of such a low $ amount of millions of transactions for how much payback?  I'd think it would be more bang for the buck to set the threshold higher, like $5k, and make it a yearly amount rather than by transaction.

The $600 mark has been in place in many states for several years, this was for any income transaction via PayPal. Some had 200 transactions or $20k. It’s just now being standardized across the board for all states and it’s for any transaction that is income based. 

Driver: PXG 0811 X+ Proto w/UST Helium 5F4

Wood: TaylorMade M5 5W w/Accra TZ5 +1/2”, TaylorMade Sim 3W w/Aldila rogue white

Hybrid: PXG Gen2 22* w/AD hybrid

Irons: PXG Gen3 0311T w/Nippon modus 120

Wedges: TaylorMade MG2 50*, Tiger grind 56/60

Putter: Scotty Caemeron Super Rat1

Ball: Titleist Prov1

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3 hours ago, Shapotomous said:

What my mind focuses on when i read that sentence and I get all twitchy!!!   😱

 

What i seriously wonder about is the decision to use $600 as a threshold.  How efficient can it be to have the IRS keeping track of such a low $ amount of millions of transactions for how much payback?  I'd think it would be more bang for the buck to set the threshold higher, like $5k, and make it a yearly amount rather than by transaction.

If I understand it correctly, which is a big if.  I think it's exactly like CNosil says.  Say you are a  ful ltime contractor and happen to get a different gig each week from a different client.  And say each one pays you  $600,  that is a small amount to them.   But you will have earned over $30,000 that year, definitely enough to be considered taxable income.  

Now would it make sense, to require contrators or individuals to say any 1099 income under $5,000 in a single year doesn't have to be recorded on your taxes or can be entered on a line on the form that doesn't add to taxable income.   Yeah, that would be nice 🙂
 

 

1 hour ago, cnosil said:

It is a yearly amount.  $600 per year.  600 $1 transactions though PayPal will result in your receiving a 1099.   This is also the amount of income from a contract type job that would generate a 1099 for you.   My wife gets 1099s from her side jobs when she makes $600 from a particular company.  The IRS isn’t tracking the transactions, PayPal just reports that you had $600 in transactions this year just like you employer reports your income.  In prior years Many states had different thresholds; mine was 200 transactions or $20k. 

:ping-small: G430 Max 10K 

:titelist-small: TSiR1 15.0 Aldlia Ascent 60g

:titelist-small: TSR2 18.0 PX Aldila Ascent 6og

:titelist-small: TSi1 20 Aldila Ascent Shafts R

:titelist-small: T350 5-GW SteelFiber I80 

:titelist-small: SM10 48F/54M and58K

:ping-small: S159 48S/52S/56W/60B

:scotty-cameron-1: Select 5.5 Flowback 35" 

:titelist-small: ProV1  Play number 12

 

 

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A little more detail on this. Not trying to go down the government talk route just providing another report on the reasoning. So don’t reply or @ me with politics.

https://www.bloomberg.com/news/articles/2022-01-13/uncle-sam-wants-a-piece-of-your-side-hustle-in-irs-crackdown

Driver: PXG 0811 X+ Proto w/UST Helium 5F4

Wood: TaylorMade M5 5W w/Accra TZ5 +1/2”, TaylorMade Sim 3W w/Aldila rogue white

Hybrid: PXG Gen2 22* w/AD hybrid

Irons: PXG Gen3 0311T w/Nippon modus 120

Wedges: TaylorMade MG2 50*, Tiger grind 56/60

Putter: Scotty Caemeron Super Rat1

Ball: Titleist Prov1

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12 minutes ago, Golfspy_CG2 said:

If I understand it correctly, which is a big if.  I think it's exactly like CNosil says.  Say you are a  ful ltime contractor and happen to get a different gig each week from a different client.  And say each one pays you  $600,  that is a small amount to them.   But you will have earned over $30,000 that year, definitely enough to be considered taxable income.  

Now would it make sense, to require contrators or individuals to say any 1099 income under $5,000 in a single year doesn't have to be recorded on your taxes or can be entered on a line on the form that doesn't add to taxable income.   Yeah, that would be nice 🙂
 

 

In two weeks I will be back as an independent contractor (woo hoo!!!)  and will make sure to bill those one time customers $599.49 whenever possible !!  🤣  

 

Modern Bag:  :ping-small: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex;   :titelist-small:  915F 3w, Diamana S+ 70 S flex;  Snake Eyes 18* 2h, 23* 4h & 27* 5h; :mizuno-small: JPX 900 Forged 6 - PW, PX LZ 6.0;  Edison 2.0 49*, 53*, 57* KBS Tour 120 S;   :ping-small:  Heppler Fetch;  Ball - :Snell: MTB-X; Bag - Jones MyGolfSpy Edition! 

Shot Scope H4, MG600 Rangefinder

Classic Bag:  Driver - :wilson_staff_small: Persimmon; 3w - :Hogan: Speed Slot; 5w - :wilson_staff_small: Tour Block; 3 - pw - :wilson_staff_small: Dynapower; sw - Ram Tom Watson;  putter - bullseye standard or flange.

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15 minutes ago, Shapotomous said:

In two weeks I will be back as an independent contractor (woo hoo!!!)  and will make sure to bill those one time customers $599.49 whenever possible !!  🤣  

 

But if you do 2 of them you have reached the yearly threshold 

Driver: PXG 0811 X+ Proto w/UST Helium 5F4

Wood: TaylorMade M5 5W w/Accra TZ5 +1/2”, TaylorMade Sim 3W w/Aldila rogue white

Hybrid: PXG Gen2 22* w/AD hybrid

Irons: PXG Gen3 0311T w/Nippon modus 120

Wedges: TaylorMade MG2 50*, Tiger grind 56/60

Putter: Scotty Caemeron Super Rat1

Ball: Titleist Prov1

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Black-market street sales.  Meet me at the so and so parking lot and bring cold, hard cash 👍.  Personally I get the massive losses in tax revenue over the past decade plus with the HUGE growth in e-commerce sales (think eBay store front businesses, etc.), but $600 threshold is, IMO, ridiculous.  I mean why $600 and not $1?  Add to that the issue with repeated forms of taxation a single item gets and you have the grounds for a great discussion.... on some other forum.

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:ping-small: G400 SFT, 19 Degree 5w

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Found out some great news from my Tax Guy. If the income on the 1099 is a result of a hobby then it’s not taxable.  
 

 

:ping-small: G430 Max 10K 

:titelist-small: TSiR1 15.0 Aldlia Ascent 60g

:titelist-small: TSR2 18.0 PX Aldila Ascent 6og

:titelist-small: TSi1 20 Aldila Ascent Shafts R

:titelist-small: T350 5-GW SteelFiber I80 

:titelist-small: SM10 48F/54M and58K

:ping-small: S159 48S/52S/56W/60B

:scotty-cameron-1: Select 5.5 Flowback 35" 

:titelist-small: ProV1  Play number 12

 

 

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53 minutes ago, Golfspy_CG2 said:

Found out some great news from my Tax Guy. If the income on the 1099 is a result of a hobby then it’s not taxable.  
 

 

Now the big question,  can I say that going to work is my hobby and any money I receive from that is not taxable  🤣 

Driver:  :ping-small: G400 Max 9* w/ KBS Tour Driven
Fairway: :titelist-small: TS3 15*  w/Project X Hzardous Smoke
Hybrids:  :titelist-small: 915H 21* w/KBS Tour Graphite Hybrid Prototype
                :titelist-small: 915H  24*  w/KBS Tour Graphite Hybrid Prototype        
Irons:      :honma:TR20V 6-11 w/Vizard TR20-85 Graphite
Wedge:  :titleist-small: 54/12D, 60/8M w/:Accra iWedge 90 Graphite
Putter:   :taylormade-small:TM-180

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Backups:  :odyssey-small: Milled Collection RSX 2, :seemore-small: mFGP2, :cameron-small: Futura 5W

Member:  MGS Hitsquad since 2017697979773_DSCN2368(Custom).JPG.a1a25f5e430d9eebae93c5d652cbd4b9.JPG

 

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1 hour ago, Golfspy_CG2 said:

Found out some great news from my Tax Guy. If the income on the 1099 is a result of a hobby then it’s not taxable.  
 

 

That sounds great - but maybe get additional verification?

H&R Block says that hobby income must be reported as "other income" and since 2018 tax law, there is no place to deduct the hobby expenses.

Just a caution to verify.

Tour Edge C721 Driver, Integra 45g L flex shaft

BombTech 2 HW 16*

BombTech 5 W

Maltby KE4-Max 5 - PW, Recoil Dart 65 A flex shaft

Maltby TSW-DRM 50*/54* wedges, Recoil Dart 75 R flex/spinner shaft

Bettinardi Studio Stock #5 putter

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22 hours ago, JDHolmes said:

So ultimately, just start a DBA, pretty easy in most states, and run your 1099 through your "business". This also allows you to deduct business expenses from those proceeds.

I am just sitting here adding up the house / shop sq ft in my head that my golf stuff takes up for the % to deduct from house expenses!!!!  80sqft for indoor putting mat, 480sqft for the workshop where i do club repair, 100 sqft for club storage and shoes and balls.... the space for the extra sets of clubs and putters and wedges will take some thought!  . 🤓

Modern Bag:  :ping-small: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex;   :titelist-small:  915F 3w, Diamana S+ 70 S flex;  Snake Eyes 18* 2h, 23* 4h & 27* 5h; :mizuno-small: JPX 900 Forged 6 - PW, PX LZ 6.0;  Edison 2.0 49*, 53*, 57* KBS Tour 120 S;   :ping-small:  Heppler Fetch;  Ball - :Snell: MTB-X; Bag - Jones MyGolfSpy Edition! 

Shot Scope H4, MG600 Rangefinder

Classic Bag:  Driver - :wilson_staff_small: Persimmon; 3w - :Hogan: Speed Slot; 5w - :wilson_staff_small: Tour Block; 3 - pw - :wilson_staff_small: Dynapower; sw - Ram Tom Watson;  putter - bullseye standard or flange.

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2 hours ago, Golfspy_CG2 said:

Found out some great news from my Tax Guy. If the income on the 1099 is a result of a hobby then it’s not taxable.  
 

 

I just added many more hobbies to my list 😉.   So this is interesting.  If one does not operate under a business per se, but sells hobby related items for profit, then that income is not taxable?  Perhaps its up to the discretion of the auditor to determine whether someone's buy/sell activity is simply hobby based.  "No, honestly, I went through 8 drivers, and 3 sets of irons this season trying to find the right one" 🤣.

:ping-small: G410 Plus, 9 Degree Driver 

:ping-small: G400 SFT, 16 Degree 3w

:ping-small: G400 SFT, 19 Degree 5w

:srixon-small:  ZX5 Irons 4-AW 

:ping-small: Glide 2.0 56 Degree SW   (removed from double secret probation 😍)

:EVNROLL: ER5v Putter  (Evnroll ER5v Official Review)

:odyssey-small: AI-One Milled Seven T CH (Currently Under Product Test)

 

 

 

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1 hour ago, fixyurdivot said:

I just added many more hobbies to my list 😉.   So this is interesting.  If one does not operate under a business per se, but sells hobby related items for profit, then that income is not taxable?  Perhaps its up to the discretion of the auditor to determine whether someone's buy/sell activity is simply hobby based.  "No, honestly, I went through 8 drivers, and 3 sets of irons this season trying to find the right one" 🤣.

Wait. Is that unusual?!?!

Driver: Ping G430 Max 9*, Ping Tour 70X

Fairway: Ping G425 15*, Ping Tour 70X

Hybrid: Ping G425 22*, Ping Tour 80X

Irons:  Ping i230 4-GW, TT DG X100

Wedges: :edel-golf-1: SMS 50D/54V/58D:Nippon:Modus 130 stiff, +1”

Putter:  :edel-golf-1: EAS 1.0

Ball: Titleist 2023 AVX

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3 hours ago, Larryw said:

That sounds great - but maybe get additional verification?

H&R Block says that hobby income must be reported as "other income" and since 2018 tax law, there is no place to deduct the hobby expenses.

Just a caution to verify.

Yeah. I’ll double check. But he actually is  HR Block preparer snd CPA.  Said something about there being s place on 1099 schedule to declare it as income from a hobby.   
 

Since it wasn’t in affect this year I didn’t go into it too much it was just an “oh by the way” question.  But yeah. I’ll definitely make sure before he files next yesr 

One thing I learned the hard way several yesrs ago. HR Block has a wide skill level  of preparers.  Some who make it their career and have professional certifications such as CPA and others who have only been through a Block training.   I had a rookie make a horrible mistake that cost me over $1,000 one year. 
 

i randomly needed up with a guy the next year who has been a CPA and works FT at another firm but helps out here.  He caught the previous yesrs mistake.   Told me he would file an amended return st NC and I got back over $1,000.  Have trusted him since. 
 

Anyway.  Didn’t mean to go off target. But yeah. I’ll defiantly confirm before next year. 

:ping-small: G430 Max 10K 

:titelist-small: TSiR1 15.0 Aldlia Ascent 60g

:titelist-small: TSR2 18.0 PX Aldila Ascent 6og

:titelist-small: TSi1 20 Aldila Ascent Shafts R

:titelist-small: T350 5-GW SteelFiber I80 

:titelist-small: SM10 48F/54M and58K

:ping-small: S159 48S/52S/56W/60B

:scotty-cameron-1: Select 5.5 Flowback 35" 

:titelist-small: ProV1  Play number 12

 

 

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1 hour ago, PMookie said:

Wait. Is that unusual?!?!

Well, no... but I wasn't wanting to name names 😆.

:ping-small: G410 Plus, 9 Degree Driver 

:ping-small: G400 SFT, 16 Degree 3w

:ping-small: G400 SFT, 19 Degree 5w

:srixon-small:  ZX5 Irons 4-AW 

:ping-small: Glide 2.0 56 Degree SW   (removed from double secret probation 😍)

:EVNROLL: ER5v Putter  (Evnroll ER5v Official Review)

:odyssey-small: AI-One Milled Seven T CH (Currently Under Product Test)

 

 

 

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So I’ll start by saying I’m not a tax professional and you should consult a qualified person before submitting your tax returns.  I’m not advising you on your taxes.  With that said, a 1099k doesn’t mean the amount is taxable.  In the scenario where you sold your old clubs for more than $600 and get a 1099k, you would fill out a schedule C to report income or loss for your “business.”  If you bought the clubs for $800 and sell for $600, you would show a loss, therefore not pay taxes on the $600.  On the flip side, if those $800 clubs now sell for $1000, you’d owe tax on the $200 profit.  1099k’s are nothing new.

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  • :ping-small: G425 3 and 5 hybrid
  • :callaway-small:  B21 irons 6-PW
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I have an actual small golf equipment business, so I have been keeping clean books for my business. Operated at a loss, primarily because I bought a Mitchell Loft/Lie machine, a MR3 putter bending machine, a high end shaft puller, and some other equipment. Because I'm a small business, i can take use the de minimas rule to write off the full amount of each of those instead of depreciating over the life of the asset.

All tax deductible 😀

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Updated 07/15/2022
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Fairway Woods:callaway-small: Rogue Max St 3HL and 7 Wood
Irons:mizuno-small: JPX 921 Hot Metal 5 to AW - Aerotech Steelfiber i95 Stiff parallel tip
Wedges:ping-small: Glide 4.0 54 and 58
Putter:  :ping-small: PLD Custom Kushin 4

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19 hours ago, Golfspy_CG2 said:

Found out some great news from my Tax Guy. If the income on the 1099 is a result of a hobby then it’s not taxable.  
 

 

YOU may have some explaining to do...

In the bag:
Driver: :titelist-small: TSR2 Project X HZRDUS Black 5.5
Fairway: :callaway-small: Apex UW 19° & 21° Project X HZRDUS Smoke RDX Black 5.5

Irons: :mizuno-small: JPX 923 HMP 5-PW UST Mamiya Recoil 95 F4
Wedges: :mizuno-small: T-22 Denim Copper 48°, 52° & 56° UST Mamiya Recoil 95 F4
Putter :Sub70: Sycamore 005 Wide Blade
Bag: 
:Ogio: Alpha Convoy 514
Balls: :callaway-small: Chrome Soft X

Cart: :CaddyTek: CaddyLite ONE Ver. 8


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40 minutes ago, MattF said:

YOU may have some explaining to do...

I think there are a number of us here that can be star witnesses for @Golfspy_CG2's  defense in that as hard as it is to believe, he REALLY does go through that many clubs.  😎

Although since it is a service to all of us that live vicariously through him and his Club Ho'ing it may be more than just a hobby so he needs to be careful who he calls to the stand.   🤔

Modern Bag:  :ping-small: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex;   :titelist-small:  915F 3w, Diamana S+ 70 S flex;  Snake Eyes 18* 2h, 23* 4h & 27* 5h; :mizuno-small: JPX 900 Forged 6 - PW, PX LZ 6.0;  Edison 2.0 49*, 53*, 57* KBS Tour 120 S;   :ping-small:  Heppler Fetch;  Ball - :Snell: MTB-X; Bag - Jones MyGolfSpy Edition! 

Shot Scope H4, MG600 Rangefinder

Classic Bag:  Driver - :wilson_staff_small: Persimmon; 3w - :Hogan: Speed Slot; 5w - :wilson_staff_small: Tour Block; 3 - pw - :wilson_staff_small: Dynapower; sw - Ram Tom Watson;  putter - bullseye standard or flange.

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On 2/5/2022 at 9:53 PM, Shankdog said:

Here’s a pretty good video that explains it.

 

 

 

Substitute "Ping G20 5W in fair condition" for  "wine stained couch" near the end, and this describes the situation most of us are in.  Thanks for the post Shankdog!

:ping-small: G425 Max D 44" set to 13*

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:ping-small: G430 HL 5 Hybrid set to 27.5*

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:cleveland-small: CBX2 ZipCore Full Face 54*

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Search "IRS occasional sales/garage sales" for further info on whether your sales are business, hobby, or the rest of us--trying to recoup a few bucks for a club that failed to change our lives.

Edited by WhoaNellie
A better punch line

:ping-small: G425 Max D 44" set to 13*

:ping-small: G430 SFT HL  5W set to 20.5*

:ping-small: G430 HL 5 Hybrid set to 27.5*

:cleveland-small: Launcher XL HALO Full Face 9I 38*

:cleveland-small: CBX2 ZipCore Full Face 54*

:cleveland-small: Huntington Beach Soft Premiere 11S 34"

:ping-small: Hoofer Craz-E Lite

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Non issue for me, thankfully, or more to the point, the young lady who does my taxes.

Louisville Golf Persimmon___2, 4, 5, 7-woods;    Epon AF-906___driving iron;   Titleist T100 5, 6, 7, 8, 9-irons; 

Titleist T100S___48°;     Edison 2.0___53º;     Titleist SM-9 (T)___58º;   Tad Moore Otto Hackbarth___putter;   

Titleist Pro V1x___ball

 

 

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  • 1 year later...

The changes in tax laws discussed in the thread from a year ago have likely already impacted many individuals selling golf equipment online. It's essential to stay informed and adapt to these regulations to avoid any potential issues with the IRS.If you've found that these tax requirements have affected your club-selling activities, considering consultation with a White-Collar Defense Attorney can still be beneficial. Even if it's been a year since the thread was posted, their expertise can help you navigate any ongoing or future legal challenges related to your golf equipment sales.

Edited by Korann
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