This topic is closed.
Just curious with all the game and mod flipping if anyone reports their gains as income to the IRS.
It's not just new game "flippers" either, it's any old game you have that appreciates over time. You sell it at a profit. But do you report the gain?
Quoted from spidey:Just curious with all the game and mod flipping if anyone reports their gains as income to the IRS.
It's not just new game "flippers" either, it's any old game you have that appreciates over time. You sell it at a profit. But do you report the gain?
Have fun at the new job working for the feds...
Remember you pay gains tax based on the adjusted basis, not the original purchase price. Most of us make improvements to pins that cost money or labor investment and raise its value, reducing the gain and the tax.
If you haven't been you will be. I suggest keeping extremely detailed records and receipts to show total cost in the game and a bill-of-sale when you sell it as proof of selling price. if you don't the IRS will see your big cash transactions and tax the full amount.
Quoted from MaxIsDead:if you don't the IRS will see your big cash transactions and tax the full amount.
Not if I keep the cash out of the bank and put it back into more pinball through another cash transaction.
Besides, I seem to lose money on pinball over time anyway.
Is that a deductible expense?
Quoted from Multiballmaniac1:Biden administration said that you have to. Hence the 85,000 new hires.
It's already fixed inflation. Biden said inflation is now 0%. I for one welcome our new IRS overlords!
Yes. Go to IRS.GOV and look for form PIN-6500. On it you need to check the box that says [x] Capital Gains on Pinball Machine Sales. Then fill in how much gains you had and pay the tax.
Quoted from Multiballmaniac1:Biden administration said that you have to. Hence the 85,000 new hires.
You’ve always had to do this.
Quoted from indybru:Can you claim your losses on pinball sales on your tax return?
I don’t think so. If so I need to file amended returns. My sales have been less than what I paid but I got the enjoyment of playing.
Cheers
Operators should be depreciating them since they get used and abused on site and lowers value. This is a common practice.
Quoted from curban:I’ve lost money on every pin sale
I can claim that, right?
Ha that’s what I’m thinking, I’ve been taking a pretty big hit on all my sales recently.
Quoted from mrm_4:This is video footage of a new IRS Agent finding a group of pinballers that didn’t claim capital gain last year after selling a pin during the price boom.
[quoted image]
Lmao
Quoted from spidey:Just curious with all the game and mod flipping if anyone reports their gains as income to the IRS.
It's not just new game "flippers" either, it's any old game you have that appreciates over time. You sell it at a profit. But do you report the gain?
Thanks, man. I haven’t laughed that hard in years.
Quoted from spidey:Just curious with all the game and mod flipping if anyone reports their gains as income to the IRS.
It's not just new game "flippers" either, it's any old game you have that appreciates over time. You sell it at a profit. But do you report the gain?
One of the more ridiculous posts here on Pinside which is really saying something.
Quoted from JethroP:Yes. Go to IRS.GOV and look for form PIN-6500. On it you need to check the box that says [x] Capital Gains on Pinball Machine Sales. Then fill in how much gains you had and pay the tax.
Actually I think that's the wrong form.
The correct one is form ID 10 T
No scarier time to be alive and no better reason for the 2nd amendment than when the IRS shows up at your door with guns.
Quoted from BigT:No joke, but all of my sales have been at a loss. I usually sell to friends and I am OK with the loss.
Can I be your friend?
Overall, my expenses for this hobby far outweigh any minor profit that I've made occasionally selling a game. This is what HR Block says:
"IRS guidelines state hobbyists sell items occasionally, not intending to make a profit from their activity. Hobbyists may deduct the expenses related to their hobby as miscellaneous itemized deductions, but not beyond the total revenue generated from the hobby. And, only the amount in excess of 2 percent of your adjusted gross income is deductible.
If sales become frequent activities done to make a profit, the IRS may classify that hobby as a business. If the taxpayer is the sole proprietor, purchases and sales must be reported on Schedule C. A tax benefit of operating a business is that ordinary and necessary business expenses can directly offset income and a loss can be shown.
No matter what is sold (it’s a treasure to someone) or how often, all taxpayers who make a profit on a sale are obligated to report that money as taxable income. Determining what your tax obligations are for any sales you make can be determined with the guidance of a tax professional."
https://www.hrblock.com/tax-center/income/other-income/capital-gains-garage-sale/
Quoted from spidey:Just curious with all the game and mod flipping if anyone reports their gains as income to the IRS.
It's not just new game "flippers" either, it's any old game you have that appreciates over time. You sell it at a profit. But do you report the gain?
Setting up an account a decade ago to set the trap today. You aren’t fooling us!
Quoted from Jamesays:The ones who cry the most about taxes usually dont pay taxes anyway.Nobody likes The Taxman
I beg to differ. This chart proves that not only do the 1%'ers pay the highest share of the total tax revenue, but they're also taxed at the highest rate compared to every other income level. That income level for the 1% is as low as 546k, too. As for someone who has ridden both sides of the top and bottom of that 50% income level mark, I'm absolutely sick and tired of hearing how the rich people need to "pay their fair share", right before they raise taxes. It's simple: the higher the tax rate, the more deductions and loopholes rich people(and their accountants) use. The lower the tax rate, the easier it is for them to just pay it and not worry about the shell game of hiding money from the IRS. I've seen it firsthand with the owners of a company I used to work for.
TaxTables (resized).pngmy dad always said "son when i was your age I worked so hard and paid for you, your mom, your sister, and supported most of your relatives. You have it easy you only to work to pay for yourself"
I said "dad you are wrong, not only do I have to work to pay for my immediate family myself, I also support others they just aren't related to me"
Quoted from rotordave:[quoted image]
WTF!
Even the police here won’t shoot you.
Our tax department might send you a nasty letter at worse!
rd
Well, they finally got Al Capone for tax evasion. I’m guessing a nasty letter wouldn’t have been too effective.
Quoted from Kwaheltrut:"IRS guidelines state hobbyists sell items occasionally, not intending to make a profit from their activity. Hobbyists may deduct the expenses related to their hobby as miscellaneous itemized deductions, but not beyond the total revenue generated from the hobby. And, only the amount in excess of 2 percent of your adjusted gross income is deductible.
This stopped being the case in 2018.
Quoted from chuckwurt:This stopped being the case in 2018.
If you take a loss on a game. You claim it?
Quoted from Gunnut40:If you take a loss on a game. You claim it?
No. Not unless you’re claiming that activity as a business.
https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business
But if you report a sale that has a gain, you can try and step up the basis of your game that you sold to reduce or eliminate the gain experienced on the sale to eliminate your tax debt. So original price plus maintenance costs, mods, etc. That’s what you compare to the sale price to come up with the capital gain you owe tax on. This is if the sale is just a one off here and there and you’re no claiming it as a business.
Quoted from Miguel351:I beg to differ. This chart proves that not only do the 1%'ers pay the highest share of the total tax revenue, but they're also taxed at the highest rate compared to every other income level. That income level for the 1% is as low as 546k, too. As for someone who has ridden both sides of the top and bottom of that 50% income level mark, I'm absolutely sick and tired of hearing how the rich people need to "pay their fair share", right before they raise taxes. It's simple: the higher the tax rate, the more deductions and loopholes rich people(and their accountants) use. The lower the tax rate, the easier it is for them to just pay it and not worry about the shell game of hiding money from the IRS. I've seen it firsthand with the owners of a company I used to work for.
[quoted image]
Since when do facts & data have anything to do with expressing an opinion? 
It's a popular fallacy that the rich don't pay their 'fair share' of taxes. It's popular because it feeds into the legitimization that parasites crave in rationalizing their standing in life. The truth is the rich pay more than their fair share of taxes. What isn't fair is so many 'poor' people pay no taxes and skate through life accordingly. I have several acquaintances who get a refund every year from the IRS because they are below the poverty line. These are people who wear Nike shoes, drive 5 year old Infiniti's, text on Iphone 32's, eat at Chili's, and always have smokes and beer. No one talks about that injustice.
As for paying tax on pinball sales, there is an entire class of people in this country - roughly half - who should be taxed to death for it is what they chose. The problem is they threw up and it got all over the rest of us.
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Plano, TX
Because I don't pay enough taxes 
