When you sell the year old phone for $600 don't you count the $600 as revenue in the year you sold it?

@SignatureEdits

6 ай бұрын

This is the part that I’m not giving anybody advice on… BUT typically, most people sell phones for cash… and yes, TECHNICALLY you would report the $600 as income, although with used goods most people dont treat it that way. 👌🏻 So there is the letter of the law, and then there is common practice… But again, not advising anyone, just putting the scenario out there!

@MarcinKr321

5 ай бұрын

@@SignatureEdits don’t you have any tax office audits in US? In Poland you would need to show the phone as a proof that you actually have it and not sold without paying taxes.

@SignatureEdits

5 ай бұрын

@@MarcinKr321 there is always a chance of an audit on a tax return... and in the event of an audit, all they would do is verify any expenses that are irregular... So if you bought 10 phones and wrote them all off, sure that would be flagged. But even if the phone were flagged, you'd only have to verify that you did in fact make that purchase, send them proof of purchase, and that would be that. But lets say worst case scenario, they decline the deduction... In that case you'd have to pay them the tax you didn't pay, and that would be the end of it. again, made this video not as tax advice - but the reality is that the vast majority of ppl buy and sell all the time 2nd hand and don't file any of these purchases on their returns - and governments are well aware of this fact and largely tolerate it... but do what you think is wise!

Great of you to diversify your content with near priceless insight. Thanks.

Very timely insight dude! Appreciate you! Also, I'm definitely closest to a scenario 2 buyer. I started pushing myself towards upgrading more regularly because I used to be scenario 1 until I realized I was losing resale value towards new gear and upgrades 😅

Wow!

Interesting

I am type #1. Soon to be type #2.