1099s and selling your unwanted golf equipment

[Titleist87 280]

So am looking at selling two putters which could cross the threshold of $600 but damned if I can produce evidence of what I paid. Wonder how that will work.

[Golfspy_CG2 33,972]

2 minutes ago, Titleist87 said:

So am looking at selling two putters which could cross the threshold of $600 but damned if I can produce evidence of what I paid. Wonder how that will work.

You'll get a 1099 for that and any other items you sell.    

So it will add to your income for the year, whether document any losses expenses etc will be up to you and your accountant, if you feel it's worth it.    If you only sell one club for $700 you'll get the 1099, but I doubt seriously it will affect your taxes greatly. 

 

[Shapotomous 5,337]

1 hour ago, Golfspy_CG2 said:

You know I have been watching this closely 

Fortunately getting notified of this early in the year will allow me to track my expenditures and sales, to see where I come out.   I did get a 1099 from paypal for 2021, let's just say I'm glad it's not in effect here until 2022.   Someone scared me and to me it was for 2021, but I confirmed with my tax preparer that i'm good for 2021 tax year.  But to keep track in 2022.

Probably 75% of my sales are on another forum, where I have a well established reputation, and usually sell to the same.  So I wouldn't be surprised as @RickyBobby_PR said, if I decide to limit my sales to those that have outstanding feedback and reputation, and go the friends and family route.  I would never consider that on Ebay.

Also I trade a fair amount in at our course, so that isnt' tracked, even thought I get less in value than selling. 

I don't go through too much equipment but to avoid the hassle I will be limiting my sales to local pickup only and strictly cash, no paypal, no venmo, etc....  

[Golfspy_CG2 33,972]

39 minutes ago, Shapotomous said:

I don't go through too much equipment but to avoid the hassle I will be limiting my sales to local pickup only and strictly cash, no paypal, no venmo, etc....  

I will build in a local no 1099 discount for an clubs I offer to sell to you
 

[cnosil 26,355]

3 hours ago, Titleist87 said:

So am looking at selling two putters which could cross the threshold of $600 but damned if I can produce evidence of what I paid. Wonder how that will work.

That is one of the things I am not sure about.   If you bought through paypal you can show what you paid.   If you bought new, you can probably indicate retail value as what you paid.   Going to be interesting how this all works out.   

[GaDawg 1,755]

6 hours ago, Titleist87 said:

So am looking at selling two putters which could cross the threshold of $600 but damned if I can produce evidence of what I paid. Wonder how that will work.

I will provide you with a bill of sale for any amount you would like. Maybe you can declare a loss and claim some depreciation.

[GaDawg 1,755]

7 hours ago, Golfspy_CG2 said:

Dawg, you're a great member here.  Please don't steer near the political line, that's your 2nd post that has done so.  Even disclaiming them doesn't work

 

[PMookie 17,604]

Much ado about nothing. An extra $600 a year on one’s income isn’t going to send them into another tax bracket. I sold $600 already this year on eBay and I have another shaft to go. It’s not going to stop me from selling and recouping money because even with the IRS tax I’m better off that trading on a new club. 

[Shapotomous 5,337]

15 hours ago, Golfspy_CG2 said:

I will build in a local no 1099 discount for an clubs I offer to sell to you
 

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.

[cnosil 26,355]

1 hour ago, Shapotomous said:

 

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.

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. 

[RickyBobby_PR 10,177]

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. 

[Golfspy_CG2 33,972]

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. 

[RickyBobby_PR 10,177]

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

[Shapotomous 5,337]

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 !!    

 

[RickyBobby_PR 10,177]

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 

[fixyurdivot 18,215]

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.

[JDHolmes 217]

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.

[Golfspy_CG2 33,972]

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.  
 

 

[cnosil 26,355]

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   

[Larryw 178]

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.