FS Wrigley Crackerjack $850

PJammin

Cropduster-80 said:

PJammin said:

Cropduster-80 said:

mace1229 said:

I read an article a couple years ago that Springsteen’s house is set up as a ranching business that loses money and Bon Jovi has a bee farm on his property that’s set up as a failing business. So their house and everything out into it is tax deductible and don’t pay property taxes. That makes me mad if true and I have to pay taxes when I sell as poster.

It’s stupid because selling stuff doesn’t account for the loss/cost either.

let’s say you sell one of those tool signed albums. You paid 800 for it, you sell for 900.  You are taxed on 900 worth of income, not the 100 profit as your 1099 will only reflect your sales revenue.  If you lose money and sell it for 700 you still get a 1099 for 700 of income.  Then you have to back all that out 

save your receipts 

people doing this for a business are probably way more familiar with doing that. I suspect the average hobbyists will end up paying more than they need to 

Well said. I tried to keep up with it the first year or so and it wasn't worth the hassle. I do my own taxes, and the taxes for my wife's business, so I have a general idea of what you can/can't do. Flag #1 for IRS is not reporting income. Do not think you can get by not recognizing this 1099 stuff. They're not going to come and haul you away but you'll probably get a letter. Sucks but I always kind of figured it would eventually get to this. 

I edited the previous post to add even more complexity 😂

a poster is “art” and that is a different tax rate as it’s a set capital gains rate. That’s different than income from selling records 

a hobby all of a sudden seems to becoming a full time job in accounting 

Hahaha....exactly THIS!!! A royal P.I.T.A. This is why I prefer to sell records at record shows, farmers markets, local music festivals, etc. Plus the interaction with the people is usually a plus......usually. There is always the one guy that is waaay to into prog rock and the older lady who tells you about ALL the Beatles stuff she had when she was young. It happens every single time. 

PJammin

tempo_n_groove said:

Cropduster-80 said:

PJammin said:

Cropduster-80 said:

mace1229 said:

I read an article a couple years ago that Springsteen’s house is set up as a ranching business that loses money and Bon Jovi has a bee farm on his property that’s set up as a failing business. So their house and everything out into it is tax deductible and don’t pay property taxes. That makes me mad if true and I have to pay taxes when I sell as poster.

It’s stupid because selling stuff doesn’t account for the loss/cost either.

let’s say you sell one of those tool signed albums. You paid 800 for it, you sell for 900.  You are taxed on 900 worth of income, not the 100 profit as your 1099 will only reflect your sales revenue.  If you lose money and sell it for 700 you still get a 1099 for 700 of income.  Then you have to back all that out 

save your receipts 

people doing this for a business are probably way more familiar with doing that. I suspect the average hobbyists will end up paying more than they need to 

Well said. I tried to keep up with it the first year or so and it wasn't worth the hassle. I do my own taxes, and the taxes for my wife's business, so I have a general idea of what you can/can't do. Flag #1 for IRS is not reporting income. Do not think you can get by not recognizing this 1099 stuff. They're not going to come and haul you away but you'll probably get a letter. Sucks but I always kind of figured it would eventually get to this. 

I edited the previous post to add even more complexity 😂

a poster is “art” and that is a different tax rate as it’s a set capital gains rate. That’s different than income from selling records 

a hobby all of a sudden seems to becoming a full time job in accounting 

Too many people were making money and the govt wasn't getting their slice.  Can't have people with money walking around that don't deserve it right?

This is why the younger generation needs to go back to cash and ditch the apps.

Truth! I haven't paid a babysitter cash in probably 3 years. They prefer apps. 

dankind

PJammin

dankind said:

Hahaha....well played. Great movie! 

on2legs

PJammin said:

Cropduster-80 said:

mace1229 said:

I read an article a couple years ago that Springsteen’s house is set up as a ranching business that loses money and Bon Jovi has a bee farm on his property that’s set up as a failing business. So their house and everything out into it is tax deductible and don’t pay property taxes. That makes me mad if true and I have to pay taxes when I sell as poster.

It’s stupid because selling stuff doesn’t account for the loss/cost either.

let’s say you sell one of those tool signed albums. You paid 800 for it, you sell for 900.  You are taxed on 900 worth of income, not the 100 profit as your 1099 will only reflect your sales revenue.  If you lose money and sell it for 700 you still get a 1099 for 700 of income.  Then you have to back all that out 

save your receipts 

people doing this for a business are probably way more familiar with doing that. I suspect the average hobbyists will end up paying more than they need to 

Well said. I tried to keep up with it the first year or so and it wasn't worth the hassle. I do my own taxes, and the taxes for my wife's business, so I have a general idea of what you can/can't do. Flag #1 for IRS is not reporting income. Do not think you can get by not recognizing this 1099 stuff. They're not going to come and haul you away but you'll probably get a letter. Sucks but I always kind of figured it would eventually get to this. 

Yes to this.  They will follow up with you.  Years ago I inherited some savings bonds from a deceased relative and cashed them.  I was erroneously told that the estate paid the taxes on the bonds so I never reported it.  I got a letter from the IRS a couple years later for the unpaid tax.  They were nice about… gave me time to look into it and explain.  At the end of the day I wrote them a letter telling them I got bad info about  the taxes and sent them a check for what I owed.