Medium Bob's Red Sea Crossing Auction on Ebay.

[nopaybob]

Okay, thats a huge relief No, definetily not hitting 20k in profit If anything due to my impatience and must have it now purge attitude I have lost 20k, lol

I don't think profit has anything to do with it. I think if you hit 20k in deposits from sales or services or even money transfers from your bank into your paypal. Paypal is required to show your hand Then uncle sam see,s that 20k as taxable income doesnt matter whether its profit or not?

[DeusExMachina]

I don't think profit has anything to do with it. I think if you hit 20k in deposits from sales or services or even money transfers from your bank into your paypal. Paypal is required to show your hand Then uncle sam see,s that 20k as taxable income doesnt matter whether its profit or not?

 

Actually, it does matter. Paypal will report you to the IRS. But you only have to pay taxes on net income.

 

That is why you have to keep track of your expenses. Gross income-expenses=net income. The net income is what can be taxed.

 

So if you received $20K in sales, but you had $18K in expenses then you can be taxed on $2K.

 

In simpler terms, if you bought a game for $10, sold it for $25, but paid $5 to ship it, you would only pay tax on $10.

[CPUWIZ]

Actually, it does matter. Paypal will report you to the IRS. But you only have to pay taxes on net income.

 

That is why you have to keep track of your expenses. Gross income-expenses=net income. The net income is what can be taxed.

 

So if you received $20K in sales, but you had $18K in expenses then you can be taxed on $2K.

 

In simpler terms, if you bought a game for $10, sold it for $25, but paid $5 to ship it, you would only pay tax on $10.

 

Keeping track of that for a hobby, is utter madness, one of the reasons why I ditched PayPal completely. Think of people who create carts and how many parts go into it, all the way down to ink carts. This is supposed to be fun, why would anyone run an accounting department for that? Last time I checked, accountants get paid pretty well. LOL

 

What would be fair, is if they check the net in their books at the end of the year, they know who you paid for what (PCB's, EPROM's, protos, blah blah) and they know what you received. It's bullshit to leave the accounting to the user.

[bojay1997]

Keeping track of that for a hobby, is utter madness, one of the reasons why I ditched PayPal completely. Think of people who create carts and how many parts go into it, all the way down to ink carts. This is supposed to be fun, why would anyone run an accounting department for that? Last time I checked, accountants get paid pretty well. LOL

 

What would be fair, is if they check the net in their books at the end of the year, they know who you paid for what (PCB's, EPROM's, protos, blah blah) and they know what you received. It's bullshit to leave the accounting to the user.

 

That's totally ridiculous and a good way to run afoul of the IRS. All you need to do is to write down on a piece of paper what you are spending on those projects. It's not like you are ordering thounsands of parts from thousands of vendors. You just take all your invoices and receipts from whatever raw materials you are buying, subtract them from what you sold the finished items for and that's the amount you pay the tax on. Honestly, it shouldn't take more than 15 minutes total. If you're selling at a loss or just breaking even, there's nothing to worry about. If you're making some money, you have an obligation to pay the taxes.

[SoulBlazer]

So, does anyone know who bought the EBay auction copy of the game -- the one from Medium Bob?

 

In any events, grats to Medium Bob.

 

You'll see I was right about the reserve being at 10k and I was just a little off on the final sale price.

 

Now, I wonder something else -- someone said eariler on this (and I'll be darned if I can find who and where) that he has it 'on good authority' that the highest serious offer that ngan had for the game before this second copy turned up was 'several thousand higher' then what he sold it for. Makes me wonder how much he lost out on and what that offer was....around 20k? A boxed Air Raid sold for double that, so I suspose it's possible.....

[Dino]

That's totally ridiculous and a good way to run afoul of the IRS. All you need to do is to write down on a piece of paper what you are spending on those projects. It's not like you are ordering thounsands of parts from thousands of vendors. You just take all your invoices and receipts from whatever raw materials you are buying, subtract them from what you sold the finished items for and that's the amount you pay the tax on. Honestly, it shouldn't take more than 15 minutes total. If you're selling at a loss or just breaking even, there's nothing to worry about. If you're making some money, you have an obligation to pay the taxes.

Do you seriously think we should be paying taxes on money made from our hobby?? If that's the case we should be able to offset expenses associated with acquiring rare games against our other income. The government would never agree to that, but it is only fair.

[Dino]

So, does anyone know who bought the EBay auction copy of the game -- the one from Medium Bob?

 

In any events, grats to Medium Bob.

 

You'll see I was right about the reserve being at 10k and I was just a little off on the final sale price.

 

Now, I wonder something else -- someone said eariler on this (and I'll be darned if I can find who and where) that he has it 'on good authority' that the highest serious offer that ngan had for the game before this second copy turned up was 'several thousand higher' then what he sold it for. Makes me wonder how much he lost out on and what that offer was....around 20k? A boxed Air Raid sold for double that, so I suspose it's possible.....

I'd say he lost at least $5k, probably a lot more. Quite an expensive mistake for not listening to the good advice he was given on this forum over the years. At any rate, its probably the last we will ever hear from him anyway now that he's sold his wares

[Miss 2600]

I'd say he lost at least $5k

 

That would explain why he posted that he'd guarantee that Medium Bob's reserve was 15K. He probably thought they got the same offer.

[Buyatari]

Keeping track of that for a hobby, is utter madness, one of the reasons why I ditched PayPal completely. Think of people who create carts and how many parts go into it, all the way down to ink carts. This is supposed to be fun, why would anyone run an accounting department for that? Last time I checked, accountants get paid pretty well. LOL

 

What would be fair, is if they check the net in their books at the end of the year, they know who you paid for what (PCB's, EPROM's, protos, blah blah) and they know what you received. It's bullshit to leave the accounting to the user.

 

Ehh just do all the transactions from one account (paypal or checking) All your expenses and income will be easy to sort because the one will be the deposits and the other the withdraws. Your "profit" would be whatever is left in the account at the end of the year.

[Buyatari]

eBay doesn't notify about the IRS, that is PayPal. And it would have to be 20K in payments in one year....and 200 transactions

 

What if payment is made with twenty 1900's double eagle gold coins? Will you only be taxed on $400?

 

The coins are legal US currency.........

[icemanxp300]

What if payment is made with twenty 1900's double eagle gold coins? Will you only be taxed on $400?

 

The coins are legal US currency.........

 

Me, I wouldn't be taxed on anything I'd hide them babys under my matress and never speak of that transaction again!!!

[SoulBlazer]

What if payment is made with twenty 1900's double eagle gold coins? Will you only be taxed on $400?

 

The coins are legal US currency.........

 

Yes, they are, but owning one myself, only a idiot would spend it at face value.

 

OTOH, just one of those is around $400 these days with the current price of gold, so you could use that to pay taxes.

[high voltage]

So who won it?

[nagn2]

I would like to personally thank Mike from GameGavel for all of his help he gave me on selling Red Sea Crossing! He couldn't have been a nicer guy! I hope I can replace FEEbay with GameGavel for my Video game sales!