(Topic ID: 307200)

Will Pinside have to report sales to the IRS with new 2022 tax laws?

By daly124

2 years ago


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  • 207 posts
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  • Latest reply 2 years ago by bigguybbr
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    There are 207 posts in this topic. You are on page 1 of 5.
    #1 2 years ago

    A couple of weeks ago I was listing a machine for sale on Facebook Marketplace. Before I finished, a pop-up said that they will be asking for my SS or TIN number in the future. I'm assuming this is part of the American Rescue Plan Act of 2021 where the IRS wants you to report any warnings over $600.00.

    So what does this mean for the hobbyists who sell/trade a machine on any selling app including on Pinside?

    #2 2 years ago

    Everything will start selling for $599…wink wink

    #3 2 years ago

    There is no escape from it unfortunately.

    I suppose starting your own website/server...

    22
    #4 2 years ago
    Quoted from daly124:

    American Rescue Plan Act of 2021

    LOL! Such a clever little name....

    #5 2 years ago

    Can someone ELI5 this? Say PayPal reports $10k of payments to the IRS. How do we account for cost of goods sold?

    #7 2 years ago

    oops.

    #8 2 years ago
    Quoted from daly124:

    A couple of weeks ago I was listing a machine for sale on Facebook Marketplace. Before I finished, a pop-up said that they will be asking for my SS or TIN number in the future. I'm assuming this is part of the American Rescue Plan Act of 2021 where the IRS wants you to report any warnings over $600.00.
    So what does this mean for the hobbyists who sell/trade a machine on any selling app including on Pinside?

    It means that if you sell a game for a profit, those profits are subject to tax. Just like they always have been. Only now, they are cracking down in the year and years and years of people not paying tax on income they have received from selling games.

    #9 2 years ago
    Quoted from ToddSonOfOdin:

    Say PayPal reports $10k of payments to the IRS. How do we account for cost of goods sold?

    I think you'd report 11K cost of goods sold. Sorry about your loss.

    #10 2 years ago

    The only way pinside will send out 1099s is if they start running all the payment processing of sales transactions here. It’s my understanding they are not doing that.

    47
    #11 2 years ago

    Here I thought it was only gonna be rich people and big businesses are paying back these stimulus bills.

    What a shock!

    #12 2 years ago
    Quoted from chuckwurt:

    It means that if you sell a game for a profit, those profits are subject to tax. Just like they always have been. Only now, they are cracking down in the year and years and years of people not paying tax on income they have received from selling games.

    But what if you sell a game for cost or at a loss? It could still be a multi thousand dollar sale that reports as "income" but it's not actually any profit.

    That is where the whole thing crumbles and I have a huge problem with it.

    If I sold my JP for $6549 which is exactly what I paid for it NIB, I'd be selling at a huge loss with all the stuff I've done to it, but to the IRS it would seem like it's straight up income.

    I stopped using paypal last year because they changed it to $600 in total income in my state starting 2021.

    #13 2 years ago
    Quoted from purbeast:

    But what if you sell a game for cost or at a loss? It could still be a multi thousand dollar sale that reports as "income" but it's not actually any profit.

    Then you pay no tax. Get with a professional if you have any questions about your specific situation.

    25
    #14 2 years ago
    Quoted from chuckwurt:

    Then you pay no tax. Get with a professional if you have any questions about your specific situation.

    Yes. All people, even the "little guys", should have to hire a professional to wade through onerous, oppressive and confusing tax laws from their government. Winning!

    #15 2 years ago
    Quoted from Gribbs:

    Yes. All people, even the "little guys", should have to hire a professional to wade through onerous, oppressive and confusing tax laws from their government. Winning!

    Or find one willing to help for free for 20 mins. Either way. We aren’t all crooks.

    12
    #16 2 years ago
    Quoted from purbeast:

    But what if you sell a game for cost or at a loss? It could still be a multi thousand dollar sale that reports as "income" but it's not actually any profit.
    That is where the whole thing crumbles and I have a huge problem with it.
    If I sold my JP for $6549 which is exactly what I paid for it NIB, I'd be selling at a huge loss with all the stuff I've done to it, but to the IRS it would seem like it's straight up income.
    I stopped using paypal last year because they changed it to $600 in total income in my state starting 2021.

    Beg the government for your money back. Don't forget, when groveling to our feudal lords, it is best to let them think they are blessing us with a gift rather than giving us back what is rightfully ours.

    #17 2 years ago

    Look on the bright side…..when the Pinball price bubble bursts, and you all start selling games at a loss, you can claim that back against your other income.

    #18 2 years ago
    Quoted from chuckwurt:

    Or find one willing to help for free for 20 mins. Either way. We aren’t all crooks.

    My comment wasn't exactly intended as 'anti-accountant'. LOL.

    11
    #19 2 years ago

    If this legislation passes it will only encourage millions of people to deal more in cash for transactions of the size that are common in our hobby and NOT make withdrawals and deposits in banks. If it’s going to be passed it will trigger a cash run on banks. No one wants their bank providing their entire years history of transactions to the IRS so they can shake more money our of our pockets. I believe I read the legislation factored in hiring hundreds of thousands of new IRS auditors to handle the workload.

    #20 2 years ago

    It’s called income tax. If you make a profit, then it gets added to your income for the year.

    If you’re worried about it, consult a financial professional.

    32
    #21 2 years ago

    The Pinside moderators as they watch this thread inevitably drift into 'politics':

    sweating (resized).jpegsweating (resized).jpeg
    #22 2 years ago

    You should meet the coin collecting group.

    Apparently any family member that recovers their loved ones rare coins or gold are basically legally forced to become a dealer before they transact. This is aside from anyone who illegally posses any coin that was supposed to be turned into the government over 100 years ago.

    I’m not into coins but my friend is so I’m told it goes something like this.

    #24 2 years ago

    No they won't have to... Below article I'm quoting says businesses that process payments..... See a related Ebay article. Now on FB and Ebay you will get a lovely 1099-K at the end of the year. What a tax nightmare.

    "The IRS is lowering the Form 1099-K reporting threshold. Starting on January 1, 2022, IRS regulations require all businesses that process payments, including online marketplaces like eBay, to issue a Form 1099-K to sellers who receive $600 or more in gross payouts. If you receive more than $600 in gross payouts over the course of the 2022 calendar year, we’ll provide a Form 1099-K to you by January 31, 2023. Your 2021 tax obligations aren’t affected by this change."

    ebay.com link: fees credits invoices

    #25 2 years ago

    Who is going to want to take cash when you can’t spend it at a concert , ballgame , hotels etc . So I’m guessing it’s sell a pin , buy a pin from here forward ? Not exactly the end of the world

    #26 2 years ago
    Quoted from Kkoss24:

    Who is going to want to take cash when you can’t spend it at a concert , ballgame , hotels etc . So I’m guessing it’s sell a pin , buy a pin from here forward ? Not exactly the end of the world

    Why can't you spend it at those places? I pay cash at lots of places. Even Amazon.

    13
    #27 2 years ago

    Maybe it will drive everyone back to the glory days of Craigslist.

    #28 2 years ago
    Quoted from beelzeboob:

    Why can't you spend it at those places? I pay cash at lots of places. Even Amazon.

    Had to use debit cards at concerts and baseball games last year .In Illinois of course .I’m not sure if they take cash in Indy south of me .

    #29 2 years ago
    Quoted from Kwaheltrut:

    Maybe it will drive everyone back to the glory days of Craigslist.

    Oh God no

    #30 2 years ago

    So will Facebook then have its own tie into your account like eBay, PayPal etc. Otherwise How would they know what exactly you sold said item for??

    #31 2 years ago
    Quoted from EJS:

    You should meet the coin collecting group.
    Apparently any family member that recovers their loved ones rare coins or gold are basically legally forced to become a dealer before they transact. This is aside from anyone who illegally posses any coin that was supposed to be turned into the government over 100 years ago.
    I’m not into coins but my friend is so I’m told it goes something like this.

    Word on the street is that’s why nobody don’t know any coin collectors. Nobody collects coins. Rare coins and gold “owed” to the government? Never heard of it!
    Personally, I don’t own any Crypto, Gold, or Guns, everything was lost in a terrible boat house accident. Sorry IRS

    #32 2 years ago
    Quoted from Isochronic_Frost:

    Word on the street is that’s why nobody don’t know any coin collectors. Nobody collects coins. Rare coins and gold “owed” to the government? Never heard of it!
    Personally, I don’t own any Crypto, Gold, or Guns, everything was lost in a terrible boat house accident. Sorry IRS

    I hear boat accidents are on the rise.

    #33 2 years ago

    I aint paying crap, I already pay enough taxes.

    If they make me I will go to the barge and throw pinball machines off the side.

    But dont get me wrong, will happily pay pinside for their services .

    -4
    #34 2 years ago
    Quoted from timtim:

    Here I thought it was only gonna be rich people and big businesses are paying back these stimulus bills.
    What a shock!

    Quoted from ultimategameroom:

    If this legislation passes it will only encourage millions of people to deal more in cash for transactions of the size that are common in our hobby and NOT make withdrawals and deposits in banks. If it’s going to be passed it will trigger a cash run on banks. No one wants their bank providing their entire years history of transactions to the IRS so they can shake more money our of our pockets. I believe I read the legislation factored in hiring hundreds of thousands of new IRS auditors to handle the workload.

    Quoted from P1nhead:

    Beg the government for your money back. Don't forget, when groveling to our feudal lords, it is best to let them think they are blessing us with a gift rather than giving us back what is rightfully ours.

    Quoted from Gribbs:

    Yes. All people, even the "little guys", should have to hire a professional to wade through onerous, oppressive and confusing tax laws from their government. Winning!

    23
    #35 2 years ago
    Quoted from ultimategameroom:

    If this legislation passes it will only encourage millions of people to deal more in cash for transactions of the size that are common in our hobby and NOT make withdrawals and deposits in banks. If it’s going to be passed it will trigger a cash run on banks. No one wants their bank providing their entire years history of transactions to the IRS so they can shake more money our of our pockets. I believe I read the legislation factored in hiring hundreds of thousands of new IRS auditors to handle the workload.

    cash on the glass
    IRS kiss my a$$

    #36 2 years ago

    In before the lock.

    #37 2 years ago

    If a run on cash happens, you can bet that the government will move to a digital currency. As a matter of fact, it’s already been floated in the U.S. and that’s not good.

    #38 2 years ago
    Quoted from ToddSonOfOdin:

    Can someone ELI5 this? Say PayPal reports $10k of payments to the IRS. How do we account for cost of goods sold?

    Same as it's always been. Receipts, cancelled checks, electronic records, handwritten notes, photos, a narrative from memory.

    Individual transactions will likely get as much scrutiny as a donation to goodwill. Likely none and a plausible narrative backed by a the equivalent of a blurry receipt that says "clothes. 25 bags" enough to cover anyone generally operating in good faith.

    13
    #39 2 years ago

    Last time I checked, pinside was based out of the Netherlands.
    Why would a Dutch company have to report transactions to the IRS?

    #40 2 years ago

    Regarding the 'eye roll' above:

    When the New Yorkers are upset with you, you KNOW you're on the right track!

    #41 2 years ago

    To be more on topic, Pinside doesn’t actually transact anything. Merely being a marketplace doesn’t matter if they’re not acting as an exchange.

    CL doesn’t charge nor report you to the IRS, because they merely connect buyers and sellers, they don’t actually handle any money. Facebook, no sure, are you taking payment through marketplace? That may be your first mistake. Don’t give Big Tech your entire life on one website

    #42 2 years ago

    Pinside has nothing to do what you sell when and where. The fees you pay to the pinside bussines account are the things the have to put in the books on the Dutch tax system and then they pay taxes . IRS has nothing to do with this. What YOU sell and make money on , Is what YOU give to the IRS. Or don’t up to you. That’s why cash is king

    #43 2 years ago

    If you get a 1099-k, you are basically being considered a small business. In this case, you sure as hell would want to list every expense associated with that income. Buy a mod for the game, calculate it as part of your cost basis. Buy a tool to fix that game, expense it; drove to pick it up, expense the mileage and any tolls, etc. Of course, it can get a lot more complicated if you start depreciating that game. Best to stick with cash sales to avoid these hassles. Wire transfers won’t help you, you wont get a 1099-k but you’ve left a trail of income that you’ll have to explain if you are audited.

    Selling a game on pinside doesn’t trigger a 1099 filing so no payment is made. However, if you have a shop on pinside and sell more than $600, you’ll get a 1099 through the credit card processor, stripe.

    #44 2 years ago

    https://apple.news/AcldCADErTEG36zxM-b9DVw

    Between collecting pinball sales taxes and this brilliant idea…. National debt is going to be eliminated!!

    #45 2 years ago
    Quoted from Ballypalooza:

    https://apple.news/AcldCADErTEG36zxM-b9DVw
    Between collecting pinball sales taxes and this brilliant idea…. National debt is going to be eliminated!!

    That looks like a headline The Onion would post...but then you read the article and find out it's real. (Cue the folks that say it can't possibly be real because of the source...)

    #46 2 years ago
    Quoted from Gribbs:

    Regarding the 'eye roll' above:
    When the New Yorkers are upset with you, you KNOW you're on the right track!

    “KNOW”. Lol.

    #47 2 years ago
    Quoted from Isochronic_Frost:

    Rare coins and gold “owed” to the government? Never heard of it!

    It wasn’t so much owed as a tax or anything but it might have been when we got off the gold standard or something but coins that were dated such and such a year were expected to be turned in to the govt in exchange for banknotes that we use today.

    Again I’m a little rusty on this info and this stuff took place way before I was born.

    #48 2 years ago

    The law as I read it only pertains to the 3rd party money processor. So if you use PayPal to accept cash for a game, you will get a 1099-k going forward. The Pinside marketplace helps connect buyers and sellers, but they do not do the money transaction. For example the 2021 law was previously $20,000 and Pinside does not send out 1099-k for everything sold over that this year. Let’s face it many users over the 20K mark this year.

    But I do wonder the pinside shop when you have a cart on this site if the mod sellers will get one now that it is $600.

    It is a real bummer for EBay now just selling a couple items is going to require a lot more paperwork just to clean out the closet. Not sure might have to do a schedule C for everything over $600! What a paperwork nightmare.

    #49 2 years ago
    Quoted from aaron6920:

    The law as I read it only pertains to the 3rd party money processor. So if you use PayPal to accept cash for a game, you will get a 1099-k going forward. The Pinside marketplace helps connect buyers and sellers, but they do not do the money transaction. For example the 2021 law was previously $20,000 and Pinside does not send out 1099-k for everything sold over that this year. Let’s face it many users over the 20K mark this year.
    But I do wonder the pinside shop when you have a cart on this site if the mod sellers will get one now that it is $600.
    It is a real bummer for EBay now just selling a couple items is going to require a lot more paperwork just to clean out the closet. Not sure might have to do a schedule C for everything over $600! What a paperwork nightmare.

    Yes, you will get a 1099-k for pinside shop sales over $600

    You will have to file schedule C.

    #50 2 years ago
    Quoted from beelzeboob:

    That looks like a headline The Onion would post...but then you read the article and find out it's real. (Cue the folks that say it can't possibly be real because of the source...)

    I love criminals getting extra kicks to the nuts like this.

    There are 207 posts in this topic. You are on page 1 of 5.

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