FYI, you're tax basis assumptions are not necessarily accurate.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
FYI, you're tax basis assumptions are not necessarily accurate.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
Arch FTW.
I would think the value is somewhere between $1-$599 . If you agree JJ, I would love to be entered in to the giveaway.
In all seriousness though, if what Arch says is true then that's fantastic news.
FYI, you're tax basis assumptions are not necessarily accurate.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
Arch FTW.
I would think the value is somewhere between $1-$599 . If you agree JJ, I would love to be entered in to the giveaway.
In all seriousness though, if what Arch says is true then that's fantastic news.
Well, I should clarify, it's not "whatever you THINK it's worth", so much as, what you can "prove" it's worth. I don't know if any of these items have been auctioned or sold individually, but that would provide a legit cost basis.
Also, any NWC sales that support a price higher than what JJ claims vs the cost of his lot would reduce the apparent cost of the other memorabilia (thus reducing your cost basis).
All told, it's still easier and cleaner if a Canadian wins
Well, I would say since a lot of people don't want to pay the $500ish for the taxes to receive these items, you could make a strong argument that the value is somewhere below $500!
It's not about paying the IRS what it deserves in this case, from what I can tell. It's more about having a $2,000 business expense that he can ride off.
All told, it's still easier and cleaner if a Canadian wins
Depending on how JJ ships and declares it we could easily get absolutely hammered with brokerage, customs fees and taxes. I'd assume he'd declare it at the same value he'd claim for tax purposes. It could easily be more expensive for a Canadian to win. This is what's stopping me from entering.
But yeah, I suppose it's easier since living and working outside the US means we're not responsible to pay the IRS (though they will try) and JJ should still be able to get his writeoff.
Selling it didn't seem right because I was supposed to give the items away.
Originally posted by: Dain
It's not about paying the IRS what it deserves in this case, from what I can tell. It's more about having a $2,000 business expense that he can ride off.
...And this where the confusion lies for me. If JJ really wants to give the games away for free, could he? It sounds like he could but would be missing out on the tax kick back.
The randomblobberizer has determined that the winner will be from..... New Zealand! Congrats to having your prize "lost in the mail" in a couple of weeks.
TAXES The items will now be valued at $500 so no 1099 will be required. This changed because arch_8ngel pointed out that I can use the most recent NWC Gray sale as the basis for the value of these items. The most recent sale was $6,500 which makes the memorabilia valued at $500.
Officially you will still owe taxes on the $500 but I will not be sending you a 1099.
INTERNATIONAL SHIPPING International members can still win but they will have to pay all shipping charges and any customs/excise taxes their country requires. I will write gift on the page when it is mailed. The amount due for shipping will be due before I ship it.
If a US customer wins I will pay shipping at my expense.
Comments
I was going to enter until I saw Robin already had. You might as well ship it to him now JJ. But just in case go ahead and enter me as well.
Ha, I win one LE Battle Kid and get smack talked forever
JJ he is right though, ship 'er on over.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
FYI, you're tax basis assumptions are not necessarily accurate.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
Arch FTW.
I would think the value is somewhere between $1-$599
In all seriousness though, if what Arch says is true then that's fantastic news.
FYI, you're tax basis assumptions are not necessarily accurate.
JJ, you can value the prize at whatever you believe your cost basis to be, but that does not represent the current FMV of the items in question. If you were to value them at less than $600 than no 1099 in required.
Also, to whoever wins this, you aren't obligated to report the full value given on the 1099 from JJ. You can value the stuff at whatever you actually think it's worth, and if the IRS audits either of you, it's up to one, or the other, of you to prove the value.
JJ - just a tip, consider what you think you would actually be able to sell the items for, individually, and use that as the FMV on the 1099. I highly doubt it's actually $2k, and there is no reason to pay the IRS more than they deserve.
Arch FTW.
I would think the value is somewhere between $1-$599
In all seriousness though, if what Arch says is true then that's fantastic news.
Well, I should clarify, it's not "whatever you THINK it's worth", so much as, what you can "prove" it's worth. I don't know if any of these items have been auctioned or sold individually, but that would provide a legit cost basis.
Also, any NWC sales that support a price higher than what JJ claims vs the cost of his lot would reduce the apparent cost of the other memorabilia (thus reducing your cost basis).
All told, it's still easier and cleaner if a Canadian wins
All told, it's still easier and cleaner if a Canadian wins
Excuse my ignorance, but if a Canadian wins do they pay nothing? Is it black and white like that?
I'm in.
I'm in!
All told, it's still easier and cleaner if a Canadian wins
Depending on how JJ ships and declares it we could easily get absolutely hammered with brokerage, customs fees and taxes. I'd assume he'd declare it at the same value he'd claim for tax purposes. It could easily be more expensive for a Canadian to win. This is what's stopping me from entering.
But yeah, I suppose it's easier since living and working outside the US means we're not responsible to pay the IRS (though they will try) and JJ should still be able to get his writeoff.
edit* I think. Maybe.
Selling it didn't seem right because I was supposed to give the items away.
It's
not about paying the IRS what it deserves in this case, from what I can
tell. It's more about having a $2,000 business expense that he can ride
off.
...And this where the confusion lies for me. If JJ really wants to give the games away for free, could he? It sounds like he could but would be missing out on the tax kick back.
Thanks!
-Rob
TAXES
The items will now be valued at $500 so no 1099 will be required. This changed because arch_8ngel pointed out that I can use the most recent NWC Gray sale as the basis for the value of these items. The most recent sale was $6,500 which makes the memorabilia valued at $500.
Officially you will still owe taxes on the $500 but I will not be sending you a 1099.
INTERNATIONAL SHIPPING
International members can still win but they will have to pay all shipping charges and any customs/excise taxes their country requires. I will write gift on the page when it is mailed. The amount due for shipping will be due before I ship it.
If a US customer wins I will pay shipping at my expense.
JJ: That's extremely cool news and sure to get everyone here excited. That's awesome of you to have changed it.
I can't wait for the 26th! This is going to be crazy.