Why do people “flip” clubs like the Jailbird? Are you really making money after having to claim paypal payments for taxes?

[avidgolfer23]

I’m just curious with the recent law change where you have to claim funds paid on PayPal/Venmo now, and then you’re ultimately taxed on it when you file your taxes, that doesn’t it nearly cost you money to try to flip a club?

 

i.e. You buy the putter for $399 + tax which ends up being $425 or so, then you try to “flip” it on eBay or any forum and then PayPal takes 3%, you have shipping costs, and then you’re taxed at your applicable tax bracket when you file your taxes and have to claim online payments, right?

 

Or have I misinterpreted the having to claim PayPal/Venmo funds for tax purposes?

 

Thanks!

[TheBiles]

I believe you only pay taxes on the profits, but no one has ever filed a tax return under the new laws yet. 

[realmfg]

WGAS what people are buying and selling??

 

[jblough99]

You pay taxes on the profits not the total dollar amount.  I've been keeping a spreadsheet of what I pay vs sold including PayPal fees and shipping.  For the year I'm sitting on a few hundred dollars loss so I won't owe anything in taxes.

 

To the original question, that's why you're seeing the ridiculous asking prices of $600 for jailbirds, much less than that and it's not really profitable.  Hopefully none actually sell at that price and these flippers are stuck with them.  I despise the whole flipper thing, taking limited items from people that actually want to use them and trying to make a quick buck.

[1s1k]

Guys, the real reason's are

 

I forgot I ordered this and it just showed up.

 

I only rolled it on my living room carpet and it's just not for me. (still in plastic)

 

Took it out for 18 holes and again, it's just not for me. 

[btyh]

10 minutes ago, 1s1k said:

Guys, the real reason's are

 

I forgot I ordered this and it just showed up.

 

I only rolled it on my living room carpet and it's just not for me. (still in plastic)

 

Took it out for 18 holes and again, it's just not for me. 

Now we got "the pro shop sold it to me a few hundred over msrp, trying to get back what I paid" 

[avidgolfer23]

52 minutes ago, jblough99 said:

You pay taxes on the profits not the total dollar amount.  I've been keeping a spreadsheet of what I pay vs sold including PayPal fees and shipping.  For the year I'm sitting on a few hundred dollars loss so I won't owe anything in taxes.

 

To the original question, that's why you're seeing the ridiculous asking prices of $600 for jailbirds, much less than that and it's not really profitable.  Hopefully none actually sell at that price and these flippers are stuck with them.  I despise the whole flipper thing, taking limited items from people that actually want to use them and trying to make a quick buck.

That makes sense - thanks for the clarification on the “profit” portion.  I’ll have to generate a spreadsheet based on paypal purchase history for tax purposes.  

[bcjim]

As I understand, you can't claim a loss for a loss taken on selling personal items (ie you aren't "running a business", just doing occasional purchases and sales). But, you also don't have to pay taxes on the 1099 documented money you got for selling something at a loss.  Example, you buy a set of irons for $1000 and sell them for $800 and get a $800 paypal 1099. There is a way to document that on your taxes that explains you sold a personal item at a loss and did not "make" $800.   Google the specifics or better yet ask your tax guy/accountant.  You cannot generally write off the $200 loss however unless  you are operating an actual business and the irons were "goods" and not a toy you wanted to test drive, is my understanding.

[jblough99]

23 minutes ago, bcjim said:

As I understand, you can't claim a loss for a loss taken on selling personal items (ie you aren't "running a business", just doing occasional purchases and sales). But, you also don't have to pay taxes on the 1099 documented money you got for selling something at a loss.  Example, you buy a set of irons for $1000 and sell them for $800 and get a $800 paypal 1099. There is a way to document that on your taxes that explains you sold a personal item at a loss and did not "make" $800.   Google the specifics or better yet ask your tax guy/accountant.  You cannot generally write off the $200 loss however unless  you are operating an actual business and the irons were "goods" and not a toy you wanted to test drive, is my understanding.

 

I hadn't planned on writing off a loss, just that I hadn't made any profit.  Just keeping track of everything in the spreadsheet just in case of an audit.

[Georgie Z]

It’s like sneakers, watches, and every other limited edition item. As long as there’s a sucker willing to pay then people will continue to flip.

[drvrwdge]

Yes you can make money doing it and yea it can be profitable. This whole “I hate flippers, they’re taking things away from people that actually want to use them” rhetoric is such bs. Because I’m savvy and in a position to do so, I should forsake money I can make to afford me the ability to do other things I want?? I’m not robbing people of insulin or coming by the goods illegally or in any other way that anyone else can. 
 

I guess I should just sell my house that has appreciated in value at a loss because it would be the right thing to do, so people that haven’t worked as hard as I have to get to where I am can have their chance…. GTFOH

[Pnwpingi210]

The jailbirds had two retail releases that anyone with a credit card and internet connection could order if they wanted to.   If their are people paying a premium on the 2nd hand market for those items that shouldn’t be an issue.

 

I think the frustration stems from a select group or limited group have access to retail cost releases and charge an additional markup on a product before it gets to the end user.   (Retro Jordan releases for example).

[third-times-a-charm]

Not today Mr. IRS man!

[tatertot]

12 hours ago, drvrwdge said:

Yes you can make money doing it and yea it can be profitable. This whole “I hate flippers, they’re taking things away from people that actually want to use them” rhetoric is such bs. Because I’m savvy and in a position to do so, I should forsake money I can make to afford me the ability to do other things I want?? I’m not robbing people of insulin or coming by the goods illegally or in any other way that anyone else can. 
 

I guess I should just sell my house that has appreciated in value at a loss because it would be the right thing to do, so people that haven’t worked as hard as I have to get to where I am can have their chance…. GTFOH

There is a difference between flipping limited edition products and true appreciation ... But you are right, if suckers pay it, they pay it.

[ilikegolf26]

12 hours ago, drvrwdge said:

Yes you can make money doing it and yea it can be profitable. This whole “I hate flippers, they’re taking things away from people that actually want to use them” rhetoric is such bs. Because I’m savvy and in a position to do so, I should forsake money I can make to afford me the ability to do other things I want?? I’m not robbing people of insulin or coming by the goods illegally or in any other way that anyone else can. 
 

I guess I should just sell my house that has appreciated in value at a loss because it would be the right thing to do, so people that haven’t worked as hard as I have to get to where I am can have their chance…. GTFOH

What are you really making on a putter though? Like $100?

[drvrwdge]

28 minutes ago, ilikegolf26 said:

What are you really making on a putter though? Like $100?

Honestly $100 would be worth my time or effort. But I’ve def had some where I took a loss. I’ve also had putters I’ve made north of $500 on and don’t even get me started on Jordan’s… Before online drops and bots were a thing, and you had to sneak into the mall overnight to sleep in line for a drop I’ve made middle 4 figures. 

[kdog25]

People are free to do as that wish as far as I’m concerned. If someone wants to pay $700 for a $400 jailbird, cool. I do also get why it annoys people so don’t get me too wrong

 

What I would take issue with us the arbitrary enforcement.  I’ve said this before as have others. The Nike shoes. I drove out of my way to go to a store. Bought some not even my size - thought I was doing a solid for anyone who couldn’t get any.  I added abt 15 to the price which was still a win for whoever bought them. Maybe got me a beer profit. Maybe.  But that was shut down. Yet these, Jordans and Scotty stuff as others have said is allowed. Makes no sense. 

[jholz]

If only someone would win the masters using Warrior Golf wedges...

[I'_rather_be_golfing]

I have friends that flip shoes and golf items that are limited in release. They make easy money cause they know someone will buy it. Honestly it hardly takes any effort to take photos and description of the item for sale. And get back much more in return. Just like the recent limited Scotty release. He got his hands on 2 of them and sold it on facebook marketplace. Sold within a couple of days. 

[tssgj65]

23 hours ago, jblough99 said:

You pay taxes on the profits not the total dollar amount.  I've been keeping a spreadsheet of what I pay vs sold including PayPal fees and shipping.  For the year I'm sitting on a few hundred dollars loss so I won't owe anything in taxes.

 

To the original question, that's why you're seeing the ridiculous asking prices of $600 for jailbirds, much less than that and it's not really profitable.  Hopefully none actually sell at that price and these flippers are stuck with them.  I despise the whole flipper thing, taking limited items from people that actually want to use them and trying to make a quick buck.

An enterprise is presumed to be for "profit" if it makes a profit in 3 of the last 5 years (overall profit).  If it does not, it is a hobby by IRS definition...... which I imagine is where 99.9% of WRXers are.  Keep records for what is paid and received in sale and we all lose money on buy/sell in the end...

[bkirkley09]

I have kept track for the last 3 years and honestly I buy things that I know I can flip try them and then sell them for even money or make a bit or lose a bit. It’s just fun for me to try new things. That being said I’m not nearly as active this year as I’m years past because like anything else after a while it becomes work and I can make a lot more money doing other things than I can reselling. 

[awtryau89]

Agree overall. People can do what they wish and there are almost always others out there that will pay extra. This Jailbird thing is going to bite most of them though. Other than a Cameron, Ive never seen so many flippers on the BST with these. Its very annoying and I won't fault them if that's their prerogative but down deep I hope they all lose money. Very similar to the Burlington Nike flippers.  Now if you buy one and truly use it and it doesn't work, I have no nasty thoughts towards you.

[PureStrikes54]

Not sure anyone that knows anything about flipping bought these with sole intention to pocket an easy flip profit. Callaway had buying window open forever and it wasn't really a "limited" release. I like to buy unique items to try them and if they don't work out sell them for the market price. At the end of the day the market will always dictate what the bid and the ask is. If market price is $100-$150 over retail price you'd be an idiot not to accept that unless selling to a friend or buddy. Only real decent "flip" on these were those that got their shipments right away to take away the waiting period issue.

 

Also goes both ways. Seem to be a lot of delusional people in the wantedtobuy section that did not follow the releases that were open forever asking to buy one for either a huge discount to retail or retail pricing. Saw one person wanting one for $100 off retail and others saying they wouldn't entertain any inflated prices 🤣.

[drvrwdge]

4 hours ago, awtryau89 said:

Agree overall. People can do what they wish and there are almost always others out there that will pay extra. This Jailbird thing is going to bite most of them though. Other than a Cameron, Ive never seen so many flippers on the BST with these. Its very annoying and I won't fault them if that's their prerogative but down deep I hope they all lose money. Very similar to the Burlington Nike flippers.  Now if you buy one and truly use it and it doesn't work, I have no nasty thoughts towards you.

Seems a bit contradictory honestly. You’re taking the moral high ground from the “everyone should have a chance to buy one at retail” perspective yet you’re wishing people lose all their money… IDK. 
 

And I actually think we’ve had several good interactions via the BST. LOL

Edited September 19 by drvrwdge

[awtryau89]

1 minute ago, drvrwdge said:

Seems a bit contradictory honestly. You’re taking the moral high ground from the “everyone should have a chance to buy one at retail” perspective yet you’re wishing people lose all their money… IDK. 

Not contradictory at all. I can state everyone has the right and I want them to have the right. It’s capitalism. I can still hope it bites them in the butt and they lose money. I generally don’t like flippers and will always feel that way. They can do what they want and I can not like it at the same time. 

[southpaw72]

I think the general disdain for flippers comes from the lack of accessibility for people that truly appreciate the product and “culture”. Hell the Scotty groups are so full of hipsters that try and flip them because they’re bored of the sneaker head game. They don’t even own a putter lol.
I bought a cover once from a guy on a Scotty drop for next to no profit on his end and every single release he now sends me the entire drop asking if I’m interested in any of it lol. Why buy everything just to make a couple bucks off the top. I mean it gets old when genuine people are prevented from products they appreciate and will use. But then again that’s capitalism  and show business baby.  Just my thoughts on why I, and presumably most of the others, don’t care for the flipping scene. 

[tatertot]

1 hour ago, southpaw72 said:

I think the general disdain for flippers comes from the lack of accessibility for people that truly appreciate the product and “culture”. Hell the Scotty groups are so full of hipsters that try and flip them because they’re bored of the sneaker head game. They don’t even own a putter lol.
I bought a cover once from a guy on a Scotty drop for next to no profit on his end and every single release he now sends me the entire drop asking if I’m interested in any of it lol. Why buy everything just to make a couple bucks off the top. I mean it gets old when genuine people are prevented from products they appreciate and will use. But then again that’s capitalism  and show business baby.  Just my thoughts on why I, and presumably most of the others, don’t care for the flipping scene. 

Is this this a primary cash flow for some people? Are they working on volume, just flipping mass quantity of shoes, clubs, anything they can buy ... 

[adamwittman]

2 hours ago, tatertot said:

Is this this a primary cash flow for some people? Are they working on volume, just flipping mass quantity of shoes, clubs, anything they can buy ... 

for some people selling shoes is a full time job. Kid i know in college made 80k last year flippint limited release sneakers from the major brands like yeez balenciaga and sheet like nike etc. he had a storage unit and a uhaul filled with sneakers and his shipping of items was insane. Would drive the uhaul to ups and spend 3 hours scanning packages in. Dude looked exhausted

[southpaw72]

7 hours ago, adamwittman said:

for some people selling shoes is a full time job. Kid i know in college made 80k last year flippint limited release sneakers from the major brands like yeez balenciaga and sheet like nike etc. he had a storage unit and a uhaul filled with sneakers and his shipping of items was insane. Would drive the uhaul to ups and spend 3 hours scanning packages in. Dude looked exhausted

I’m not knocking that at all I know it’s big money. I meant people are career flippers and keeping you and I from the Hawaii Scotty cover drop that we would love to game on our trip to the plantation course this year, or hang on the wall with the rest of the collection we’ve assembled etc.. that’s all that’s why the hate on “flippers” 

[the bishop]

On 9/18/2023 at 1:03 PM, jholz said:

If only someone would win the masters using Warrior Golf wedges...

This is an undervalued post.