Also, when he compiles a list, and declares a winner, there can be something said if by both parties if there are any issues and a follow up can be done
I'll stay polite and positive in saying this, but I just don't feel that this should be done here on NA. It seems that everything JJ has done here has road a fine-line and has been marred in some sort of controversy. I'm not here to judge anyone's intent, but I think a straight sale would be less controversial.
Either sell something or don't at this point. There's too much drama as it is, and this is just gearing up to go down that road.
I want to stress once again that I'm not insinuating anything in regards to JJ's intent. I just think that this type of sale/give-away/whatever it is should be done on his site on not here.
I can definitely appreciate what you mean. I tried to give this away on my site but wasn't able to, most of the people on my website are not collectors and didn't care about these items.
Selling it didn't seem right because I was supposed to give the items away.
The reason I chose to give them away on NA is because there are tons of collectors on the site and someone who wins will want it. I don't want to spend another 6 months trying to give these items away to customers on my site who aren't interested.
While I still don't agree with it being conducted here, I appreciate both your reply and your ability to not take what I said personally.
The memorabilia will redoubtably end up with someone that appreciates it, and that is important.
I just don't understand why it has to be valued at $2000. It's a t-shirt, cheap trophy and plaque from a contest held like 20 years ago. I can't imagine the IRS would actually see this as being worth that much. Just my $.02. Good luck though, I know someone here will want it for sure!
I just don't understand why it has to be valued at $2000. It's a t-shirt, cheap trophy and plaque from a contest held like 20 years ago. I can't imagine the IRS would actually see this as being worth that much. Just my $.02. Good luck though, I know someone here will want it for sure!
I wish I could value it less too, but the IRS will value it based upon what I paid for the items. I bought these items from someone else on NA along with a NWC Gray cartridge for $7,000 and I was paying $5,000 for NWC Gray (which was the going price when I bought it). That's how I got the $2,000 price
I don't know how much these items would sell for now, but if someone can give me proof that these items would sell for less today than I would be more than willing to use that valuation instead.
Ya, I don't know enough about taxes to be 100% sure about this kind of thing, I guess you'd need some kind of sales results to set a value. I think taxes on prizes like this are dumb as hell anyhow. To me, it's worth whatever it cost to make it. Probably <$40. It's like when that guy caught Berry Bonds' last homerun ball. They made him pay taxes on the estimated value of the ball at auction. I think I would have lawyered up and argued that a baseball is only worth $1 and here is your $0.24 in taxes!
Not that it's my business, but couldn't they say that the game was valued at $5,000, you over payed the price of $6,700 and the items are worth $300? If you give away the items, you are entitled to $300.
Originally posted by: jonebone Like when Perfect got banned, I immediately regretted selling him my 10/10 Panic CIB. Consider that as pretty much gone from the community.
Woah PerFect got banned?? For what?? any links? I sold that guy my minty fire n ice too and he still complained wishing it was mintier?
Originally posted by: jonebone Like when Perfect got banned, I immediately regretted selling him my 10/10 Panic CIB. Consider that as pretty much gone from the community.
Woah PerFect got banned?? For what?? any links? I sold that guy my minty fire n ice too and he still complained wishing it was mintier?
Tried to sell a fake Neo Geo game on the forums for $1850. Thread is here if you'd like to read:
I'd like to enter, but this tax thing is scary. I'm not sure what the taxes are in my state. If anyone can help me out I might enter for sure.
You don't pay JJGames a dime, but instead you must claim the amount given to you ($2,000) on your taxes as taxable income, which in turn means you pay taxes on it. In a nutshell, it's like adding $2,000 to your total reported income. The reason you have to report it is because JJ will be reporting it as a business expense (payable to YOU), which is represented in a 1099 form that he'll be sending you.
This isn't income you can just ignore -- you have to report it; the alternative is that if you get audited, you'll not only have to pay the amount of taxes you would've owed, but also accrued interest on that amount.
I'd like to enter, but this tax thing is scary. I'm not sure what the taxes are in my state. If anyone can help me out I might enter for sure.
You don't pay JJGames a dime, but instead you must claim the amount given to you ($2,000) on your taxes as taxable income, which in turn means you pay taxes on it. In a nutshell, it's like adding $2,000 to your total reported income. The reason you have to report it is because JJ will be reporting it as a business expense (payable to YOU), which is represented in a 1099 form that he'll be sending you.
This isn't income you can just ignore -- you have to report it; the alternative is that if you get audited, you'll not only have to pay the amount of taxes you would've owed, but also accrued interest on that amount.
Oh, and Pick Me, Pick Me!
This helps. So the rate really depends on if you have state income tax and what bracket of federal taxes you fall in. To my knowledge, my state doesn't have a income tax. So, I'd just be paying whatever it adds to my federal tax.
so how do you figure out the percentage? sorry if this sounds dumb.
Add the amount you made for the entire year (next year) + $2,000 and then use next year's tax charts to gauge what you'll own. Here's 2009's tax charts:
Single
Married Filing Jointly/QW
Married Filing Separately
Head of Household
LTCG/QD
Tax rate
over
up to
over
up to
over
up to
over
up to
Tax Rate
10%
0
8,350
0
16,700
0
8,350
0
11,950
0%
15%
8,350
33,950
16,700
67,900
8,350
33,950
11,950
45,500
0%
25%
33,950
82,250
67,900
137,050
33,950
68,525
45,500
117,450
15%
28%
82,250
171,550
137,050
208,850
68,525
104,425
117,450
190,200
15%
33%
171,550
372,950
208,850
372,950
104,425
186,475
190,200
372,950
15%
35%
372,950
372,950
186,475
372,950
15%
So if you're single and make $33,000 and then get this item, that will take you from a 15% tax bracket to a 25% bracket. People on any of these cusps might want to make sure this doesn't backfire on them.
Edit: Dain beat me. I was just about to mention about being bumped to another bracket. Also, you don't pay out a full 25% on all the income, its just what amount is in the next bracket.
Oh, I didn't know it was sales tax he was talking about. I suppose I'm in then! Thanks Ryan.
No, it's not sales tax, not even close -- it's income tax.
Dain, thank you for clarifying this for everyone.
You don't pay me anything. I send the winner the items and the 1099 form. The winner than reports the $2,000 as income on their 2010 taxes they file with the IRS and the taxes they file with their state.
Sales tax is not involved at all, just income tax.
Comments
I'll stay polite and positive in saying this, but I just don't feel that this should be done here on NA. It seems that everything JJ has done here has road a fine-line and has been marred in some sort of controversy. I'm not here to judge anyone's intent, but I think a straight sale would be less controversial.
Either sell something or don't at this point. There's too much drama as it is, and this is just gearing up to go down that road.
I want to stress once again that I'm not insinuating anything in regards to JJ's intent. I just think that this type of sale/give-away/whatever it is should be done on his site on not here.
I can definitely appreciate what you mean. I tried to give this away on my site but wasn't able to, most of the people on my website are not collectors and didn't care about these items.
Selling it didn't seem right because I was supposed to give the items away.
The reason I chose to give them away on NA is because there are tons of collectors on the site and someone who wins will want it. I don't want to spend another 6 months trying to give these items away to customers on my site who aren't interested.
While I still don't agree with it being conducted here, I appreciate both your reply and your ability to not take what I said personally.
The memorabilia will redoubtably end up with someone that appreciates it, and that is important.
Good luck.
As the only member that actually misses a NWC trophy and plaque, I believe it should be mine. I'm in. (it would be very odd if I won)
I'd say it would be strange if you didn't win, you lucky SOB
(I was there for the BK draw)
I just don't understand why it has to be valued at $2000. It's a t-shirt, cheap trophy and plaque from a contest held like 20 years ago. I can't imagine the IRS would actually see this as being worth that much. Just my $.02. Good luck though, I know someone here will want it for sure!
I wish I could value it less too, but the IRS will value it based upon what I paid for the items. I bought these items from someone else on NA along with a NWC Gray cartridge for $7,000 and I was paying $5,000 for NWC Gray (which was the going price when I bought it). That's how I got the $2,000 price
I don't know how much these items would sell for now, but if someone can give me proof that these items would sell for less today than I would be more than willing to use that valuation instead.
--
Like when Perfect got banned, I immediately regretted selling him my 10/10 Panic CIB. Consider that as pretty much gone from the community.
Woah PerFect got banned?? For what?? any links? I sold that guy my minty fire n ice too and he still complained wishing it was mintier?
Like when Perfect got banned, I immediately regretted selling him my 10/10 Panic CIB. Consider that as pretty much gone from the community.
Woah PerFect got banned?? For what?? any links? I sold that guy my minty fire n ice too and he still complained wishing it was mintier?
Tried to sell a fake Neo Geo game on the forums for $1850. Thread is here if you'd like to read:
http://www.nintendoage.com/forum/messageview.cfm?catid=6&threadid=26631&keyword1=metal slug
I'd like to enter, but this tax thing is scary. I'm not sure what the taxes are in my state. If anyone can help me out I might enter for sure.
You don't pay JJGames a dime, but instead you must claim the amount given to you ($2,000) on your taxes as taxable income, which in turn means you pay taxes on it. In a nutshell, it's like adding $2,000 to your total reported income. The reason you have to report it is because JJ will be reporting it as a business expense (payable to YOU), which is represented in a 1099 form that he'll be sending you.
This isn't income you can just ignore -- you have to report it; the alternative is that if you get audited, you'll not only have to pay the amount of taxes you would've owed, but also accrued interest on that amount.
Oh, and Pick Me, Pick Me!
Oh, I didn't know it was sales tax he was talking about. I suppose I'm in then! Thanks Ryan.
No, it's not sales tax, not even close -- it's income tax.
I'd like to enter, but this tax thing is scary. I'm not sure what the taxes are in my state. If anyone can help me out I might enter for sure.
You don't pay JJGames a dime, but instead you must claim the amount given to you ($2,000) on your taxes as taxable income, which in turn means you pay taxes on it. In a nutshell, it's like adding $2,000 to your total reported income. The reason you have to report it is because JJ will be reporting it as a business expense (payable to YOU), which is represented in a 1099 form that he'll be sending you.
This isn't income you can just ignore -- you have to report it; the alternative is that if you get audited, you'll not only have to pay the amount of taxes you would've owed, but also accrued interest on that amount.
Oh, and Pick Me, Pick Me!
This helps. So the rate really depends on if you have state income tax and what bracket of federal taxes you fall in. To my knowledge, my state doesn't have a income tax. So, I'd just be paying whatever it adds to my federal tax.
I suppose I'm still in.
so how do you figure out the percentage? sorry if this sounds dumb.
Add the amount you made for the entire year (next year) + $2,000 and then use next year's tax charts to gauge what you'll own. Here's 2009's tax charts:
It depends on what your income is...
http://www.moneychimp.com/features/tax_brackets.htm
Edit:
Dain beat me. I was just about to mention about being bumped to another bracket. Also, you don't pay out a full 25% on all the income, its just what amount is in the next bracket.
Give it to skylerz.
He already has one! (and he's in Oz)
Oh, I didn't know it was sales tax he was talking about. I suppose I'm in then! Thanks Ryan.
No, it's not sales tax, not even close -- it's income tax.
Dain, thank you for clarifying this for everyone.
You don't pay me anything. I send the winner the items and the 1099 form. The winner than reports the $2,000 as income on their 2010 taxes they file with the IRS and the taxes they file with their state.
Sales tax is not involved at all, just income tax.