Jump to content

New 1099k rules...and how it impacts gear junkies/golfers. Is this actually a good thing? CPAs feel free to chime in (merged)


dciman1
 Share

Recommended Posts

I'll take it!  I'm in lol  What can I say....I use what works......most of the time 🤣

 

I was thinking with the handful of bst groups that are on there for golf clubs.

 

I haven't done much with facebook over the years so wasn't sure, but my wife seems to be putting something new on our front porch of all our old kids stuff daily lol. 

Cobra LTDx LS 9* w/ Kai'li White 60TX

Callaway Rogue 🔷🔷🔷-T 3W w/ XC 7X

TEE 220 Pro w/ TZFive 105 M5

Srixon ZX Utility 4 iron @ 22* w/ MMT105TX

Srixon ZX5-5&6i w/ MMT125TX

Srixon ZX7-7-pw w/ MMT125TX

Cleveland CBX2 48*(bent to 50*) w/ MMT125TX

Cleveland CBX Zipcores 54/58 w/ KBS 610

Odyssey 5k Tri-Hot Double wide w/ Accra FX 400

ProV1 Left dash

Link to comment
Share on other sites

So the reason people put “do not use Facebook pay” is because you have to link your bank account and they take a chunk of the sale, as well as charge the buyer taxes. It’s a giant pain in the butt. 

TSi3 8° Fujikura Ventus Black 6TX 

Rogue ST 💎💎💎 T 14° Ventus TR 8X 

ZX U 18° Ventus Black 10TX
ZX7 4-AW C Taper 130X 
Fourteen RM-4 56/60 
PXG Operator / Piretti GOAT 
Left Dash / Tour B X 

Link to comment
Share on other sites

2 minutes ago, endy said:

So the reason people put “do not use Facebook pay” is because you have to link your bank account and they take a chunk of the sale, as well as charge the buyer taxes. It’s a giant pain in the butt. 

Gotcha….sounds like the exact business model of eBay. 

 

Guess a little more research is needed. 

 

 

Cobra LTDx LS 9* w/ Kai'li White 60TX

Callaway Rogue 🔷🔷🔷-T 3W w/ XC 7X

TEE 220 Pro w/ TZFive 105 M5

Srixon ZX Utility 4 iron @ 22* w/ MMT105TX

Srixon ZX5-5&6i w/ MMT125TX

Srixon ZX7-7-pw w/ MMT125TX

Cleveland CBX2 48*(bent to 50*) w/ MMT125TX

Cleveland CBX Zipcores 54/58 w/ KBS 610

Odyssey 5k Tri-Hot Double wide w/ Accra FX 400

ProV1 Left dash

Link to comment
Share on other sites

3 minutes ago, jgreer1421 said:

Gotcha….sounds like the exact business model of eBay. 

 

Guess a little more research is needed. 

 

 


With Venmo now offering goods and services protection, people are using that more and more as well. Crappy thing is, I can see scammers using the new law as an excuse as to why they will only accept “gifted” payment, and unfortunately I think people will oblige it more often. Going to be interesting waters to navigate lol. 

  • Like 1

TSi3 8° Fujikura Ventus Black 6TX 

Rogue ST 💎💎💎 T 14° Ventus TR 8X 

ZX U 18° Ventus Black 10TX
ZX7 4-AW C Taper 130X 
Fourteen RM-4 56/60 
PXG Operator / Piretti GOAT 
Left Dash / Tour B X 

Link to comment
Share on other sites

  • 2 weeks later...

The new rules seem pretty clear, if you exceed $600 in electronic payments labeled as "goods and services", you will be issued a 1099k. I am assuming if you do not file anything, the IRS will simply view this as earned income.  Now for golfers who buy/sell lots of gear and accessories, they will quickly exceed this threshold and be subject to the new rules. I know the intent was to get profiteers and side hustle folks to "pay their fair share", but what about those who essentially are always buying/selling at a loss? 

 

If the IRS is going to view reselling goods as "income", does that mean I can actually report it as a loss, assuming I keep track of the original purchase price and sell it for less than I paid? And if simply buying/selling goods is essentially being treated as a small business, can I then start writing off all business related expenses? Ebay fees, paypal fees, shipping. What about the car I use to drive to buy the clubs? Or the computer if I buy everything online? How about my golf club membership, where I may entertain potential buyers of my used equipment? 

Link to comment
Share on other sites

23 minutes ago, mmoran said:

You just need to be able to prove your "business" is not a hobby.

What is that threshold? But does it not essentially become a business the minute you get a 1099k? If the IRS wants to view selling 2nd hand gods as income, don't they at the same time need to view the original purchase as an expense?

Link to comment
Share on other sites

1 minute ago, Krt22 said:

I guess that clarifies it. I guess you need to keep track of all your expenses, just to show you did not make any actual income. What a PITA

I was just going to say, I suspect this is similar to any 1099 filing, just now they are going through 3rd party vendors like eBay.  I suspect if you keep the receipts/payments for the items you are selling that would help to offset the gross receipts portion.  Just like selling a security, the company only reports the sale price, not the purchase price.

  • Like 1
Link to comment
Share on other sites

I am not a CPA and I hope this doesn't get shut down for "politics" as it's a relevant topic for many active BSTers in the coming months. 

 

Provided you have decent traceability on your purchases and sales, it would be easy to demonstrate that your cash app payments are just resale of personal goods at a breakeven/loss and you're not running a side hustle. 

 

I personally despise TurboTax but if you want to read a thread on the specific topic it may clarify for you. 

Stealth Plus 9*, Diamana ZF 70TX

TSi2 15*, Diamana BF 80TX

Flash SZ 18°, VTS Silver 8x
Mizuno MP Fli Hi 21°, Recoil 110

MP-20 MMC  5-P, DG X100
SM8 50F, 54S, 58M
PXG Closer Gen 2  
Tour BX

Link to comment
Share on other sites

16 minutes ago, dhacker56 said:

As long as there is not a profit ...NO taxes!  simple. 

I would argue it's not quite that simple, with the much lower threshold for a 1099 being issued, you need to be more diligent to prove that there is no profit (before the threshold was 20k and 200 transactions, so much less of an issue), otherwise you will either needlessly pay additional tax or potentially get hit with a CP2000. 

 

I will say it is a complete farce that a "hobby" can generate taxable income, but cannot generate tax deductible losses. 

  • Like 2
Link to comment
Share on other sites

17 minutes ago, Krt22 said:

I would argue it's not quite that simple, with the much lower threshold for a 1099 being issued, you need to be more diligent to prove that there is no profit (before the threshold was 20k and 200 transactions, so much less of an issue), otherwise you will either needlessly pay additional tax or potentially get hit with a CP2000. 

 

I will say it is a complete farce that a "hobby" can generate taxable income, but cannot generate tax deductible losses. 

It's pretty simple via a spreadsheet to show no profit (assuming that's the situation), and 'no' you don't get to claim 'losses'.  You then fill out the applicable IRS schedule and you're done.  I had to do this last year since VA had implemented a greater than $800 rule.  My processed payments were well into the 5 figures, yikes.  It was good in that it significantly curtailed my ho'in.

  • Like 1

PING i20 10.5*

Adams a7 PNT 19*

Wilson FG62 5, 7, 9

Vokey SM7 52F, 58M

PING BeCu Anser

Link to comment
Share on other sites

16 minutes ago, brew4eagle said:

It's pretty simple via a spreadsheet to show no profit (assuming that's the situation), and 'no' you don't get to claim 'losses'.  You then fill out the applicable IRS schedule and you're done.  I had to do this last year since VA had implemented a greater than $800 rule.  My processed payments were well into the 5 figures, yikes.  It was good in that it significantly curtailed my ho'in.

You see this is problematic for me, since I always told myself "Never add it all up!" 

  • Haha 2
Link to comment
Share on other sites

16 hours ago, Krt22 said:

I would argue it's not quite that simple, with the much lower threshold for a 1099 being issued, you need to be more diligent to prove that there is no profit (before the threshold was 20k and 200 transactions, so much less of an issue), otherwise you will either needlessly pay additional tax or potentially get hit with a CP2000. 

 

I will say it is a complete farce that a "hobby" can generate taxable income, but cannot generate tax deductible losses. 

When I was much younger I would buy two young steers and raise them to market weight.  I would then sell one and butcher the other for our use.  I did this for three years until we decided it was of no real benefit based on the cost and work involved.  My tax preparer told me that as long as we showed ANY profit in one year out of three we could write of the losses in the other two years.  Since if you make a profit in one year you are showing intent that it is not meant a s a hobby.  The same would apply here.  And it would sound like you are just trying to make money and avoid the taxes.  This is the exact reason the Congress did this.  After all we know that the Congress can't live within any budget they set out.

Edited by dhacker56
Link to comment
Share on other sites

2 hours ago, dhacker56 said:

When I was much younger I would buy two young steers and raise them to market weight.  I would then sell one and butcher the other for our use.  I did this for three years until we decided it was of no real benefit based on the cost and work involved.  My tax preparer told me that as long as we showed ANY profit in one year out of three we could write of the losses in the other two years.  Since if you make a profit in one year you are showing intent that it is not meant a s a hobby.  The same would apply here.  And it would sound like you are just trying to make money and avoid the taxes.  This is the exact reason the Congress did this.  After all we know that the Congress can't live within any budget they set out.

Not even remotely the case (not that there is anything wrong with trying to lower one's tax liability). Any club ho knows that it is 100% a losing venture, a losing venture that I now burdened with tabulating every single year (which in turn likely means a higher fee to my CPA). Do you not think it's a bit crazy that individuals need to keep track of cost basis of regular consumer goods that are bought and sold? I was simply pointing out the inconsistency in this tax policy. When it comes to small business, securities trading, gambling, etc...any income you earn you have to report, but in turn any loss you incur can then be written off. For this "hobby" income that isn't the case, it's a one way street to pound town.  With that being said, the new policy may just drive me to attempt to make money, such that I can use the tax code to offset my losses lol

  • Like 2
Link to comment
Share on other sites

5 hours ago, Krt22 said:

Not even remotely the case (not that there is anything wrong with trying to lower one's tax liability). Any club ho knows that it is 100% a losing venture, a losing venture that I now burdened with tabulating every single year (which in turn likely means a higher fee to my CPA). Do you not think it's a bit crazy that individuals need to keep track of cost basis of regular consumer goods that are bought and sold? I was simply pointing out the inconsistency in this tax policy. When it comes to small business, securities trading, gambling, etc...any income you earn you have to report, but in turn any loss you incur can then be written off. For this "hobby" income that isn't the case, it's a one way street to pound town.  With that being said, the new policy may just drive me to attempt to make money, such that I can use the tax code to offset my losses lol

I have no problem with lowering one's tax liability....LEGALLY.  But to Club HO and make money and pay no taxes is not LEGALLY reducing one's tax liabilty. 

  • Confused 1
Link to comment
Share on other sites

46 minutes ago, dhacker56 said:

I have no problem with lowering one's tax liability....LEGALLY.  But to Club HO and make money and pay no taxes is not LEGALLY reducing one's tax liabilty. 

You are clearly not a real club ho lol. No real club ho ever makes any money, period. The best you can do is sell off the "losers" to mitigate your losses. We just now have to actually prove this on a yearly basis smdh

Edited by Krt22
  • Like 2
Link to comment
Share on other sites

23 minutes ago, dhacker56 said:

Tell that to those selling the SC trash!

That's not "club ho'in" imo, that's "flipping".  Agree that flippers (those buying things to simply sell for a profit) should be subject to taxes on those profits.

  • Like 3

PING i20 10.5*

Adams a7 PNT 19*

Wilson FG62 5, 7, 9

Vokey SM7 52F, 58M

PING BeCu Anser

Link to comment
Share on other sites

  • Gxgolfer changed the title to New 1099k rules...and how it impacts gear junkies/golfers. Is this actually a good thing? CPAs feel free to chime in (merged)

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
  • Our picks

    • 2022 FedEx St Jude Championship - Discussion and Links
      Please put any questions or comments here
       
       
       
       
      General Albums
       
       
      2022 FedEx St Jude Championship - Tuesday #1
      2022 FedEx St Jude Championship - Tuesday #2
      2022 FedEx St Jude Championship - Tuesday #3
      2022 FedEx St Jude Championship - Tuesday #4
      2022 FedEx St Jude Championship - Wednesday #1
       
       
       
       
      WITB Albums
       
       Marc Leishman - WITB - 2022 FedEx St Jude Championship
      Jhonattan Vegas - WITB - 2022 FedEx St Jude Championship
      Scottie Scheffler - WITB - 2022 FedEx St Jude Championship
      Jon Rahm - WITB - 2022 FedEx St Jude Championship
      Cam Smith - WITB - 2022 FedEx St Jude Championship
      Justin Thomas - WITB - 2022 FedEx St Jude Championship
      Cameron Young - WITB - 2022 FedEx St Jude Championship
      Collin Morikawa - WITB - 2022 FedEx St Jude Championship
      Rory McIlroy - mini WITB - 2022 FedEx St Jude Championship
       
       
       
      Pullout Albums
       
       
      New Ping putters - 2022 FedEx St Jude Championship
      Aaron Wise's new Cameron putter - 2022 FedEx St Jude Championship
      New Odyssey putters - 2022 FedEx St Jude Championship
      New Odyssey putter covers - 2022 FedEx St Jude Championship
      Cameron Masterful+ & Timeless+ - 2022 FedEx St Jude Championship
      Cameron T-12 prototype - 2022 FedEx St Jude Championship
      New Softspike Tour Flex Pro spike - 2022 FedEx St Jude Championship
       
       
       
       
       
       
       
       
      • 4 replies
    • 2022 Wyndham Championship - Discussion and Links
      Please put any questions or comment here
       
       
      General Albums
       
      2022 Wyndham Championship - Monday #1
      2022 Wyndham Championship - Monday #2
      2022 Wyndham Championship - Monday #3
       
       
       
      WITB Albums
       
       
      Mac McGirt (Will's son) - WITB - 2022 Wyndham Championship
       
       
       
       
      Pullout albums
       
       
      Cameron putters - 2022 Wyndham Championship
      Odyssey/Toulon putters - 2022 Wyndham Championship
      New Cameron Custom Shop putter covers - 2022 Wyndham Championship
      Axis 1 - 2022 Wyndham Championship
       
       
       
       
       
       
       
       
       
       
       
       
       
      • 5 replies
    • 2022 Rocket Mortgage Classic WITB & Photos- Links and discussion here
      Please put and questions or comments here 
       
       
      General Albums
       
       
      2022 Rocket Mortgage Classic - Monday #1
      2022 Rocket Mortgage Classic - Monday #2
       
       
       
       
      WITB Albums
       
       
      Ben Cook - WITB - Michigan PGA Section Champ - 2022 Rocket Mortgage Classic
       
       
       
       
      Pullout Albums
       
       
      Cameron putters - 2022 Rocket Mortgage Classic
       
       
       
       

       
        • Like
      • 9 replies
    • Post in PING G430 - Are They Finally Going Back to a Carbon Fiber Crown?
      So this was lurking on the USGA conforming clubs site... would be nice to see a a view from address.
       
        • Thanks
        • Like
    • 2022 The Open Championship @ St Andrews: WITB & Equipment Photos- Discussion and Links
      Please put any questions or comments here
       
       
       
       
       
       
       
       
      General Albums
       
       
      2022 The Open Championship @ St Andrews Old Course - Sunday #1
      2022 The Open Championship @ St Andrews Old Course - Sunday #2
      2022 The Open Championship @ St Andrews Old Course - Monday #1
      2022 The Open Championship @ St Andrews Old Course - Monday #2
      2022 The Open Championship @ St Andrews Old Course - Monday #3
      2022 The Open Championship @ St Andrews Old Course - Monday #4
      2022 The Open Championship @ St Andrews Old Course - Monday #5
      2022 The Open Championship @ St Andrews Old Course - Monday #6
       
       
       
       
       
       
       
       
       
      Pullout Albums
       
       
      Srixon staff bags - 2022 The Open Championship @ St Andrews Old Course
      Mizuno 221 "Blue" irons - 2022 The Open Championship @ St Andrews Old Course
      Titleist 150th golf balls - 2022 The Open Championship @ St Andrews Old Course
      Justin Thomas testing a Titleist T200 2-iron: 150th Open Championship
      Mito Pereira testing a Ping i525 3iron for 2022 The Open Championship @ St Andrews Old Course
      TaylorMade's 2022 Open Championship staff bag??
      Callaway staff golf bags for the 2022 The Open Championship @ St Andrews Old Course
      Titleist's 2022 Open Championship bag???
       
       
       
       
       
       
       
       
        • Like
      • 22 replies

×
×
  • Create New...