O.G. CIB

Hobby expenses can't exceed to the income therefore it can't be negative. I will copy something from Turbo Tax to break down an example. Hobby income and expenses Beginning in 2018, the IRS doesn't allow you to deduct hobby expenses from hobby income. you must claim all hobby income and are not permitted to reduce that income by any expenses. For tax years prior to 2018, you can deduct expenses as an itemized deduction subject to 2% of your adjusted gross income. Also, the amount that you claim as an expense cannot be greater than your income from the hobby. In other words, your hobby cannot generate a loss. For example, if you're a knitter and spent $300 on yarn and other supplies, and sold one sweater for $150, you can use only up to $150 in expenses ($300-$150 = $150). But, if you spent $300 on your knitting hobby and earned $300 from the sale of two sweaters, you can use the full amount of your expenses. The expenses you can deduct are called "ordinary expenses" and "necessary expenses." Ordinary expenses are those required to carry out the hobby, such as fabric and thread for a quilter. Necessary expenses are those that help you develop the skills your hobby requires, like attending a quilting class. I am sorry but the hobby thing wont work for the volume of a normal video game collector.

Unfortunately, video games are now viewed as a collectible and not as a hobby where we all started thus the selling activity will be looked at. If you purchase say over 10k worth of stuff a year you are not going to get by saying its just a hobby and turn around and say it was to upgrade you stuff or for other things. They will ask, why are you upgrading? Isn't a nicer copy more valuable? Your done. or well I took the profits and bought something else.... your done. It is not going to register to the average agent that you spent 10k not for a benefit. I say these things so everyone can prepare if they are audited. The more publicity video games get the more Uncle Sam will want a cut. Video games are an asset now. If they appreciate on their own that's one thing but if you are working to upgrade that asset ask yourself what the average person will think. Flipping and buying something else is making profit to enhance your collection. Here is where they would trap most people along with you answers above. 2. Whether you have personal motives in carrying on the activity. 6. Whether you or your advisors have the knowledge needed to carry on the activity as a successful business. 9. Whether you can expect to make a future profit from the appreciation of the assets used in the activity. Old time (2008) read from Price Charting Blog https://blog.pricecharting.com/2008/04/irs-cares-about-your-video-game.html#:~:text=Your video game collection could,tax bill this April 15.

Nowhere I stated to "ignore" any form entirely. You may be assuming that when I said they wouldn't collect tax. You still have to file and take the proper deductions in order to account for the 1099-k once it's issued. The IRS rather classify you as a business than a hobbyist. They NEVER want to classify you as a hobbyist. They want to tax you and true hobbyist activity for the most part is not for profit. 9/10 people on this forum would fail the IRS 9 rule test for being a hobbyist. What's been happening is people have been sliding by the $600 rule. It is NOT a new rule. You are required in any business to send a 1099 to anyone you pay over $600. Now the are forcing online companies to do so. They have lobbied for years to stop it but at the end of the it got delayed as long as it could. Everyone needs to educate themselves you can better position yourself. Also the IRS doesn't recognize a "Hobby Seller" no such thing exist under the code. as an FYI per the IRS website Question How do you distinguish between a business and a hobby? Answer In making the distinction between a hobby or business activity, take into account all facts and circumstances with respect to the activity. A hobby activity is an activity not done for profit. This includes activities done mainly for sport, recreation, or pleasure. No one factor alone is decisive. You must generally consider these factors in determining whether an activity is a business engaged in making a profit: 1. Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records. 2. Whether you have personal motives in carrying on the activity. 3. Whether the time and effort you put into the activity indicate you intend to make it profitable. 4. Whether you depend on income from the activity for your livelihood. 5. Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business). 6. Whether you or your advisors have the knowledge needed to carry on the activity as a successful business. 7. Whether you were successful in making a profit in similar activities in the past. 8. Whether the activity makes a profit in some years and how much profit it makes. 9. Whether you can expect to make a future profit from the appreciation of the assets used in the activity. You may find more information on this topic in section 1.183-2(b) of the Federal Tax Regulations.

If its for personal property they would not collect tax when you sold nor allow you a write off. If its for a business you would have depreciated it (straight line or MACRS or Section 179) over the useful life. So assume it was straight line that would be over 5 years (4,000) a year. When you turn around and sell it you would have to recapture it as capital gain. Dealing in collectibles at the volume some people do is where the issue is.

You raise some excellent issues some people on here maybe thinking about. As someone that does taxes you should have also stated what are some of the remedies to help everyone know what they should do. I just don't get how to record satisfactory bookkeeping and receipts. Like if you buy a lot of 10 ga.es off Craigslist for $50 and keep 2 games and sell the rest online of $100, what is the COGS? Do you average out the cost per item at the time of purchase? As in, each game is worth $5 and you COGS is $40 for the sale? Do you use $50 COGS? And hold the rest? What if you decide to sell the remaining 2 games later? What if you keep 8 if the games and sell the rest of the lot for only $20? Is that $10 of income using a cost of $5 per game or a $30 loss? It depends on if you decide to keep inventory on your books. If you keep inventory and don’t assign a value to each your COGS would be $40 on $100 sale thus $60 in profit with $10 sitting in inventory. Now in the real world an agent isn’t going to count what was in the listing so you would print the listing and record it a $50 COGS with $100 in sales with $50 in profit. If you sell them later depending on how you handled COGS. If you kept 8 and sold 2 for $20 ………… your profit would be $10. The remaining would sit in inventory and it isn’t a loss. What if you bought a game 15 years ago and decide to sell it now? How do you prove your cost basis? How do you prove you've had it over a year to potentially hit Capital Gains rates? Well this is the tricky part when you don’t have documentation however, in absences of receipts you could rely on price charting, old price guides, digital press guides or whatever from a publication to establish a basis. An agent is not required to accept it but you’ll find most will if you’re not establishing a loss. If you repair consoles, proving costs for parts and consoles and depreciation of tools will be a bitch. Naw, most tools used in the course of business can use section 179 to expense all in the year purchased. What if you bought something before you knew about this law and didn't keep the receipt? My SIL bought a $900 robot vacuum a few years ago and sold online for $600ish. She had to pay taxes on the money she earned to buy it and if she didn't have a receipt then she has to pay more taxes, plus SE tax, to sell the damn thing. Wtf Losses on the sale of personal use property does not count for this. Most personal us property is sold at a loss. This is geared toward hobbyist and investors hiding out on places like eBay. Under prior law, hobbyists could claim as an itemized deduction their hobby-related expenses up to the amount of income the hobby earned during the year. However, the tax cuts and jobs act eliminates the itemized deduction for hobby expenses. Unfortunately, most people on this forum are not true hobbyist which under code is an activity your engaged in for other than profit. Most people try to profit when they sell on eBay. What if you sell and have a loss on the year? Will the lossee be clawed back with hobby-loss? No, and you wouldn’t want it as an hobby because you can’t deduct it. You rather classify it as a business therefore, you can realize the loses. If you buy stuff locally with cash and no receipt, and sell online, how do you prove your cost basis? All you need to do is document it. Create your own receipt and tie it to whatever withdrawal from your bank that ties to the transaction. If its a stash of cash you have start a petty cash log. If register as an LLC can I use a home office deduction for the square footage off my home where I clean, test, and repair games and consoles? Can I write off mileage for game hunting and finds? You don’t have to register as an LLC to take the deduction. The home office deduction is the most audited deduction and always a dangerous one to take. The space can only be used for the intended purpose of the business and nothing else. You can write off mileage provided you keep the mileage records. If I buy from a thrift store and the receipt isn't itemized or descriptive, is there more burden of proof put on me for deteming the cost basis? Cost basis is always on you but if you have an internal memo for each item purchased, date and whatever you will be in the clear. End of the day some people have to decide if selling on eBay is a business for them or not. Its more advantageous if it is but you may not want to do the paperwork. Get hit with a tax bill for selling sealed games or a large dollar volume of sales you will have no choice but to learn.

You can only hide for so long. Until he steps into the ring with a fighter around his age with training he will be considered a side show.

Yes, you would be screwed because you have no proof of a cost basis “if” you are audited. They would disallow the amount you stated as cost and tell you to prove it.

There is not a single Prison (feds or state) that you can watch YouTube or have Facebook in America. The only point of outside communication in federal prison is email. The systems are heavily monitor thru a company called Corrlinks (not sure what states use). The only way an inmate has access to either is having a smuggled phone in their cell, usually with the assistance of a CO or someone posting for them after they talk on the phone.

Knocked off 1... lets get this party started

Mission complete

They have LRG stuff pop up way later at times. I picked up Samurai Shodown Neo Geo Collection for a reasonable price. Also, their prices are in Canadian so its about 20% less after conversion. Keep your eye on the site.

Naw..... blind boxes, LRG Store and you can try https://pnpgamesonline.com/

I have... it’s pretty cool. The owner has been working on the web version for some time and hopefully it elevates soon. There are constant updates in the app. Prices come from price charting. Technically you can add a game at anytime thru the open source database they get the data from.

GameValueNow started a slow death once the original owner sold. If you haven’t, I suggest you find another home to track your collections. Since it’s not a paid service and most likely used to gather data it’s probably been purged and gone the way of NA.

Some reading for those interested. https://www.investopedia.com/articles/personal-finance/061715/how-are-collectibles-taxed.asp I've filed taxes on game purchases for years. I treat it like a business which works to my advantage. The issue will arise for some if their audited and the IRS pays games with disallowing your cost basis. Anyhow, if your a small time guy its not worth their time but some people move a significant amount of money and you have to consider your strategy. It's best to consult a tax professional to get a better understanding.

https://www.ecommercebytes.com/C/abblog/blog.pl?/comments/2021/3/1615153514.html https://www.cnbc.com/2021/03/26/its-going-to-get-harder-to-avoid-telling-the-irs-about-income-from-online-sales.html

Looks like it was some type of sticker? Kinda big to attach to the front of the box. I don’t think it’s an insert but I’ve been proven wrong before

I’ve never seen it. I have a Nintendo Power insert that has printed in Taiwan on it but that’s it. No code but that doesn’t matter because there are various inserts without codes. Mentions cutting out the UPC thou. Could have been a pack in or maybe something Konami placed in stores. Either way cool item

They already have that game signed if I recall correctly. That’s a done deal

That’s been going on since day one. Nothing new to the collectors that have been actively involved in WATA/Hertiage. It’s openly discussed on Facebook groups.

Here you go. I purchased it the day it came out. Another one to consider is Race with Ryan Deluxe Version

Thank you..... I am getting a better grip on what you consider re-releases. I got one for you to add, Mario + Rabbids Kingdom Battle Gold Edition

Agreed. I am not looking to document the difference, just one of each licensed cart. For example Streets of Rage 4 I think is the same from LRG and Merge. So this would technically be the same release. If we were to apply SNES rules then 2 wouldn't count similar to the Majesco releases. IDK I guess, as always, there is no perfect way. Fun stuff

Whatever works for you. I don't count any of the Pre-Orders until they start shipping. I keep them on a separate tab incase anything happens with any of the companies. My only issue with Trine is I always refer to the old NES rules. If someone every went for a loose switch set then Trine Ultimate wouldn't have an entry...... then some people would say if you count the case then maybe the digital one cases should count since you are collecting covers. Power Rangers and Grip is a little different since the cart and contents are not the same. @11strings mentioned there are about 20 re-releases that he tracks. Maybe he can share the list and that would be a better category for those in between releases. I think its awesome that people are tracking this stuff so earlier. I believe later on if there are physical collectors for the switch this will be one of the harder sets to obtain and not only because of limited publishers. There are a lot out of print titles already that will become harder to find as the years go on.