Ack wrote:Keep in mind though, folks, that if the IRS considers you a business as an individual for paying on a 1099, that you can also claim business expenses to lower your tax debt. For example, you sold your items on the internet? Well now, your internet bill is technically a business expense because you use it for conducting business. The mileage accrued driving to the post office, any equipment purchases you make for cleaning/testing games, any money spent conducting research on value, etc., is now a business expense.
Jagosaurus wrote:Heres a perfect real world example outside of gaming BST...
Mrs Jago had a friend pay her a decent amount of money to split a hotel, Ubers, and tickets on a vacation via Venmo. Now I'm going to owe taxes on that... let that sink in . They didn't even think about it bc they've been doing it for years.
Jagosaurus wrote:Heres a perfect real world example outside of gaming BST...
Mrs Jago had a friend pay her a decent amount of money to split a hotel, Ubers, and tickets on a vacation via Venmo. Now I'm going to owe taxes on that... let that sink in . They didn't even think about it bc they've been doing it for years.
Splitting dinner with your friend, sending your roommate money for rent or gifting your cousin a round of birthday drinks? Don’t sweat it. “It’s not taxable,” Watson says.
Jagosaurus wrote:@o.pwuaioc - wait ... is PayPal friends & family exempt?
If so, big difference. Doesn't save you from ebay or good/services transactions, but helps on forum BST options.
I personally don't use Venmo. Assuming there's a similar F&F option?
Can't look up right now. Clarification on both would be a huge win. I don't mind being mistaken, esp if it saves us all money
Jagosaurus wrote:@o.pwuaioc - wait ... is PayPal friends & family exempt?
If so, big difference. Doesn't save you from ebay or good/services transactions, but helps on forum BST options.
I personally don't use Venmo. Assuming there's a similar F&F option?
Can't look up right now. Clarification on both would be a huge win. I don't mind being mistaken, esp if it saves us all money
Ack wrote:Keep in mind though, folks, that if the IRS considers you a business as an individual for paying on a 1099, that you can also claim business expenses to lower your tax debt. For example, you sold your items on the internet? Well now, your internet bill is technically a business expense because you use it for conducting business. The mileage accrued driving to the post office, any equipment purchases you make for cleaning/testing games, any money spent conducting research on value, etc., is now a business expense.
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