I just feel worse for small businesses who have to figure out how to collect and pay for this tax mess more then myself personally paying $400 tax to buy a game.
No one wants to pay more for items but if it does end we had a good run. Did we all think it would last forever?
Quoted from usandthem:
This would be great if it were so simple. There are a lot of complex reasons why some people who start with "nothing" do way better than people who actually do start with nothing.
This is the kind of story that never gets told from the "I did it all myself" crowd. The best quote is here: "I didn't inherit my wealth. I created it.
But look a little deeper, and it turns out that version of my success story is a lie. Yes, my family background is rather humble. Both of my parents were teachers. I grew up in hand-me-down clothes from our neighbors.
But, before I was born, my parents got help from their parents to buy a house in a safe neighborhood with good schools. When my grandmother passed, she left each of her grandkids some money, not a fortune, but enough that I made it through college without school debt.
My wife's nana was a school teacher as well. She and her husband saved their humble income and bought land decades ago. And when I started my business, she believed in me enough to sell her land and invest the money in my start-up.
So, we can blow up the myth that I'm a self-made success. Sure, I had something to do with it, but I also had some serious help."
The story goes on to talk about other forms of generational privilege, but you get the idea.
On that note, we're certainly not going to resolve our differences of opinion here. The reality is that this tax has just upped the cost of the hobby.
You base your views on this guy?
Looks like he got his BA degree at North Texas in band and jazz? Then he worked for 20 plus years in the tech industry and became a millionaire selling a company I cant find the sale of. ??
I dunno man. Jazz Band Major in college to tech millionaire with 25 years of his work in tech doesn't sounds like he did most of it on his own to me.
This is seriously what you base your view on "folks start at third base" to make it in the US? Band major millionaire. OK?
Quoted from RustyLizard:
I think your numbers are off. Dealer cost on a NIB has to be quite a bit higher than what they pay for a used trade in. With your trade in they need to shop and test it, make any repairs and provide any warranty work done themselves.
Dealers need to stay in business so I think the number is closer to $2000 for the trade in difference. Then at that point most will chosse to sell it themselves because the market is so good on used games.
Keep in mind the dealers do make money on the sale of a NIB. New games don't have to be "tested and shopped out" very much. Also if one sells a game on their own they would have to pay full tax on the new purchase. I think $1000 plus and LED MET could get you a NIB. There is more incentive for the buyer to do this saving $300 on taxes. Heck I would personally take $2000 and a MET and get someone a NIB Pro they want.
My prediction is trade ins will be more of a thing going forward. Could be wrong.
Quoted from PinLen83:
Is this due to the new property write off limitations?
I am not a CPA so add info or correct
me. That is fine
From what I understand the State and local taxes, SALT, is now capped out at a $10,000 deduction. So if you pay $7000 in property tax and $7000 in state income tax you can only apply $10,000 Federal tax deduction instead of $14,000.
On the flip side standard deductions were doubled. So now if you file married joint return it is $24000, so you would need to deduct over $14,000 more over if you reached $10,000 total income and property tax to make it worth while to itemize.
So I view it as - the higher standard deduction will be good for folks who do not have a lot of deductions or could itemize in the past but not a huge amount.
It will not be as good if you pay high property taxes and state income taxes to add along with your mortgage interest, charity contributions etc.. NY, NJ tax payers who have homes may take a little hit or not. That does suck, but on the other side - why should the federal govt heavily subsidize a state just because it has high property and income taxes?
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