RickyBobby_PR Posted February 4, 2022 Share Posted February 4, 2022 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. GaDawg 1 Quote 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 Link to comment
Golfspy_CG2 Posted February 4, 2022 Share Posted February 4, 2022 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. Shapotomous 1 Quote G430 Max 10K TSiR1 15.0 Aldlia Ascent 60g TSR2 18.0 PX Aldila Ascent 6og TSi1 20 Aldila Ascent Shafts R T350 5-GW SteelFiber I80 SM10 48F/54M and58K S159 48S/52S/56W/60B Select 5.5 Flowback 35" ProV1 Play number 12 Link to comment
RickyBobby_PR Posted February 4, 2022 Share Posted February 4, 2022 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 Quote 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 Link to comment
Shapotomous Posted February 4, 2022 Share Posted February 4, 2022 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 !! Headhammer 1 Quote Modern Bag: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex; 915F 3w, Diamana S+ 70 S flex; Snake Eyes 18* 2h, 23* 4h & 27* 5h; JPX 900 Forged 6 - PW, PX LZ 6.0; Edison 2.0 49*, 53*, 57* KBS Tour 120 S; Heppler Fetch; Ball - MTB-X; Bag - Jones MyGolfSpy Edition! Shot Scope H4, MG600 Rangefinder Classic Bag: Driver - Persimmon; 3w - Speed Slot; 5w - Tour Block; 3 - pw - Dynapower; sw - Ram Tom Watson; putter - bullseye standard or flange. Link to comment
RickyBobby_PR Posted February 4, 2022 Share Posted February 4, 2022 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 Kansas King 1 Quote 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 Link to comment
fixyurdivot Posted February 4, 2022 Share Posted February 4, 2022 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. Shapotomous and Kansas King 2 Quote G410 Plus, 9 Degree Driver G400 SFT, 16 Degree 3w G400 SFT, 19 Degree 5w ZX5 Irons 4-AW Glide 2.0 56 Degree SW (removed from double secret probation ) ER5v Putter (Official Review) AI-One Milled Seven T CH (Official Review) Link to comment
JDHolmes Posted February 4, 2022 Share Posted February 4, 2022 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. Shapotomous 1 Quote Link to comment
Golfspy_CG2 Posted February 5, 2022 Share Posted February 5, 2022 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. GaDawg, MattF, Kansas King and 3 others 5 1 Quote G430 Max 10K TSiR1 15.0 Aldlia Ascent 60g TSR2 18.0 PX Aldila Ascent 6og TSi1 20 Aldila Ascent Shafts R T350 5-GW SteelFiber I80 SM10 48F/54M and58K S159 48S/52S/56W/60B Select 5.5 Flowback 35" ProV1 Play number 12 Link to comment
cnosil Posted February 5, 2022 Author Share Posted February 5, 2022 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 Golfspy_CG2, Kansas King, MattF and 1 other 1 3 Quote Driver: G400 Max 9* w/ KBS Tour Driven Fairway: XCG7 Beta 15* w/Fujikura Fuel Hybrids: 915H 21* w/KBS Tour Graphite Hybrid Prototype 915H 24* w/KBS Tour Graphite Hybrid Prototype Irons: TR20V 6-11 w/Vizard TR20-85 Graphite Wedge: 54/12D, 60/8M w/Accra iWedge 90 Graphite Putter: Sacks Parente MC 3 Stripe Backup Putters: Milled Collection RSX 2, mFGP2, Futura 5W, TM-180 Member: MGS Hitsquad since 2017 Link to comment
Larryw Posted February 5, 2022 Share Posted February 5, 2022 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. MattF and Kansas King 2 Quote 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 Link to comment
Shapotomous Posted February 5, 2022 Share Posted February 5, 2022 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! . cnosil, fixyurdivot, SlowNLow and 1 other 2 2 Quote Modern Bag: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex; 915F 3w, Diamana S+ 70 S flex; Snake Eyes 18* 2h, 23* 4h & 27* 5h; JPX 900 Forged 6 - PW, PX LZ 6.0; Edison 2.0 49*, 53*, 57* KBS Tour 120 S; Heppler Fetch; Ball - MTB-X; Bag - Jones MyGolfSpy Edition! Shot Scope H4, MG600 Rangefinder Classic Bag: Driver - Persimmon; 3w - Speed Slot; 5w - Tour Block; 3 - pw - Dynapower; sw - Ram Tom Watson; putter - bullseye standard or flange. Link to comment
fixyurdivot Posted February 5, 2022 Share Posted February 5, 2022 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" . Golfspy_CG2, Shapotomous and MattF 2 1 Quote G410 Plus, 9 Degree Driver G400 SFT, 16 Degree 3w G400 SFT, 19 Degree 5w ZX5 Irons 4-AW Glide 2.0 56 Degree SW (removed from double secret probation ) ER5v Putter (Official Review) AI-One Milled Seven T CH (Official Review) Link to comment
PMookie Posted February 5, 2022 Share Posted February 5, 2022 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?!?! Golfspy_CG2, MattF and Shapotomous 1 1 1 Quote 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: SMS 50D/54V/58DModus 130 stiff, +1” Putter: EAS 1.0 Ball: Titleist 2023 AVX Link to comment
Golfspy_CG2 Posted February 5, 2022 Share Posted February 5, 2022 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. MattF and Shapotomous 2 Quote G430 Max 10K TSiR1 15.0 Aldlia Ascent 60g TSR2 18.0 PX Aldila Ascent 6og TSi1 20 Aldila Ascent Shafts R T350 5-GW SteelFiber I80 SM10 48F/54M and58K S159 48S/52S/56W/60B Select 5.5 Flowback 35" ProV1 Play number 12 Link to comment
fixyurdivot Posted February 5, 2022 Share Posted February 5, 2022 1 hour ago, PMookie said: Wait. Is that unusual?!?! Well, no... but I wasn't wanting to name names . PMookie, Shapotomous and MattF 3 Quote G410 Plus, 9 Degree Driver G400 SFT, 16 Degree 3w G400 SFT, 19 Degree 5w ZX5 Irons 4-AW Glide 2.0 56 Degree SW (removed from double secret probation ) ER5v Putter (Official Review) AI-One Milled Seven T CH (Official Review) Link to comment
Kansas King Posted February 6, 2022 Share Posted February 6, 2022 I'm looking forward to IRS clarification on this topic in the coming months along with an actual response from a tax professional or CPA. I feel certain that there has to be some tax accounting people on this forum somewhere that will be able to provide a solid rundown of the rules for 2022. MattF and cnosil 2 Quote Link to comment
Shankdog Posted February 6, 2022 Share Posted February 6, 2022 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. Quote G425 Max driver G425 SFT 3 wood G425 3 and 5 hybrid B21 irons 6-PW CBX Zipcore 48 and CBX2 52/58 Wedges 2 ball Ten Tour lined Tour BX ball Arccos Caddie with Apple Watch Hyperflex shoes Chiller Hybrid Stand Bag Link to comment
dlow206 Posted February 6, 2022 Share Posted February 6, 2022 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 Kansas King, MattF and Shapotomous 3 Quote Follow my golf journey to break into the 80s Tester for the Titleist TSi Driver Spring 2020 MGS Tester for the Fujikura Motore X Shaft Updated 07/15/2022 Driver: Rogue St Max LS - Autoflex Fairway Woods: Rogue Max St 3HL and 7 Wood Irons: JPX 921 Hot Metal 5 to AW - Aerotech Steelfiber i95 Stiff parallel tip Wedges: Glide 4.0 54 and 58 Putter: PLD Custom Kushin 4 Link to comment
Shankdog Posted February 6, 2022 Share Posted February 6, 2022 Here’s a pretty good video that explains it. WhoaNellie and MattF 2 Quote G425 Max driver G425 SFT 3 wood G425 3 and 5 hybrid B21 irons 6-PW CBX Zipcore 48 and CBX2 52/58 Wedges 2 ball Ten Tour lined Tour BX ball Arccos Caddie with Apple Watch Hyperflex shoes Chiller Hybrid Stand Bag Link to comment
MattF Posted February 6, 2022 Share Posted February 6, 2022 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... Shapotomous and fixyurdivot 2 Quote In the bag: Driver: Darkspeed X 9° UST Mamiya LIN-Q M40X Blue 7F4 Fairway: Apex UW 19° & 21° Project X HZRDUS Smoke RDX Black 5.5 Irons: JPX 923 HMP 5-PW UST Mamiya Recoil 95 F4 Wedges: T-22 Denim Copper 48°, 52° & 56° UST Mamiya Recoil 95 F4 Putter Sycamore 005 Wide Blade Bag: Fairway 14 stand bag Balls: Chrome Tour Cart: CaddyLite ONE Ver. 8 God Bless America, God save the King, God defend New Zealand and thank Christ for Australia! Link to comment
Shapotomous Posted February 6, 2022 Share Posted February 6, 2022 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. MattF, fixyurdivot and GaDawg 3 Quote Modern Bag: G410 LST 10.5*, Hzrdus Smoke RDX 6.5 Flex; 915F 3w, Diamana S+ 70 S flex; Snake Eyes 18* 2h, 23* 4h & 27* 5h; JPX 900 Forged 6 - PW, PX LZ 6.0; Edison 2.0 49*, 53*, 57* KBS Tour 120 S; Heppler Fetch; Ball - MTB-X; Bag - Jones MyGolfSpy Edition! Shot Scope H4, MG600 Rangefinder Classic Bag: Driver - Persimmon; 3w - Speed Slot; 5w - Tour Block; 3 - pw - Dynapower; sw - Ram Tom Watson; putter - bullseye standard or flange. Link to comment
WhoaNellie Posted February 7, 2022 Share Posted February 7, 2022 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! Shankdog 1 Quote G425 Max D 44" set to 13* G430 SFT HL 5W set to 20.5* G430 HL 5 Hybrid set to 27.5* Launcher XL HALO Full Face 9I 38* CBX2 ZipCore Full Face 54* Huntington Beach Soft Premiere 11S 34" Hoofer Craz-E Lite Link to comment
WhoaNellie Posted February 8, 2022 Share Posted February 8, 2022 (edited) 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 February 8, 2022 by WhoaNellie A better punch line Shapotomous 1 Quote G425 Max D 44" set to 13* G430 SFT HL 5W set to 20.5* G430 HL 5 Hybrid set to 27.5* Launcher XL HALO Full Face 9I 38* CBX2 ZipCore Full Face 54* Huntington Beach Soft Premiere 11S 34" Hoofer Craz-E Lite Link to comment
BostonSal Posted February 8, 2022 Share Posted February 8, 2022 Non issue for me, thankfully, or more to the point, the young lady who does my taxes. WhoaNellie 1 Quote 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 Link to comment
Korann Posted November 8, 2023 Share Posted November 8, 2023 (edited) 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 November 13, 2023 by Korann Quote Link to comment
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.