Waffles on FB

racerx217
Profile picture for user racerx217
Posts
1188
Joined
10/10/2008
Location
MI US
racerx217 11/25/2020 2:17pm
11/25/2020 2:17pm
First off why are they called waffles and not a raffles?
Second serious question here to the guys that are doing multiple ones. What do you do with the 1099 that you get at the end of the year from paypal?
|
GeorgiePorgie 11/25/2020 2:19pm
11/25/2020 2:19pm Edited Date/Time 11/25/2020 2:20pm
Because they’re illegal. And Facebook pulls down raffle. So people say waffle so they won’t pull it down.

All fun n games till the tax man shows up.
5
smashingpumpkins167 11/25/2020 2:23pm
11/25/2020 2:23pm
Anything that requires sending money via friends and family is usually a bad idea.

I thought it would be cool to do something similar, but for charity.
mh226
Profile picture for user mh226
Posts
178
Joined
3/18/2015
Location
CA
mh226 11/25/2020 2:50pm
11/25/2020 2:50pm
These are good for a week or two before they get busted
racerx217
Profile picture for user racerx217
Posts
1188
Joined
10/10/2008
Location
MI US
racerx217 11/25/2020 3:18pm
11/25/2020 3:18pm
All valid points but what I am asking. Say you raffle a mini bike. You buy it new for $2500 and raffle off and make $1500 profit. Do it a few times then you get a 1099 for $12000 from paypal. Then you pay capital gains on $12k and wind up loosing money...? I just dont get the math on this and how you can turn a profit when you cant write off the cost of the product, which you cant do because you took all the money via friends and family. Who knows maybe I am way off point on this one.
1
1

The Shop

See All »
silver753
Profile picture for user silver753
Posts
137
Joined
5/18/2010
Location
Brick, NJ US
silver753 11/25/2020 3:58pm
11/25/2020 3:58pm
You can still make a profit, but I'm guessing most guys doing this aren't motivated to file an extra set of paperwork with their taxes. Look at how many people refuse to even title their bike! But yes, you can make a profit, but at the end of the year instead of pocketing $10,000 (imaginary number) now you pocket $7500 (ish) and have to file taxes properly, like use an accountant or stop by a tax place in a strip mall.
1
racerx217
Profile picture for user racerx217
Posts
1188
Joined
10/10/2008
Location
MI US
racerx217 11/25/2020 5:03pm
11/25/2020 5:03pm
silver753 wrote:
You can still make a profit, but I'm guessing most guys doing this aren't motivated to file an extra set of paperwork with their taxes. Look...
You can still make a profit, but I'm guessing most guys doing this aren't motivated to file an extra set of paperwork with their taxes. Look at how many people refuse to even title their bike! But yes, you can make a profit, but at the end of the year instead of pocketing $10,000 (imaginary number) now you pocket $7500 (ish) and have to file taxes properly, like use an accountant or stop by a tax place in a strip mall.
If you do more than 10K in incoming transactions via any cash or credit card app you get a 1099, you cannot simply not file a 1099 with your taxes. That will catch up with you pretty quickly.
silver753
Profile picture for user silver753
Posts
137
Joined
5/18/2010
Location
Brick, NJ US
silver753 11/26/2020 10:35pm
11/26/2020 10:35pm
silver753 wrote:
You can still make a profit, but I'm guessing most guys doing this aren't motivated to file an extra set of paperwork with their taxes. Look...
You can still make a profit, but I'm guessing most guys doing this aren't motivated to file an extra set of paperwork with their taxes. Look at how many people refuse to even title their bike! But yes, you can make a profit, but at the end of the year instead of pocketing $10,000 (imaginary number) now you pocket $7500 (ish) and have to file taxes properly, like use an accountant or stop by a tax place in a strip mall.
racerx217 wrote:
If you do more than 10K in incoming transactions via any cash or credit card app you get a 1099, you cannot simply not file a...
If you do more than 10K in incoming transactions via any cash or credit card app you get a 1099, you cannot simply not file a 1099 with your taxes. That will catch up with you pretty quickly.
Yes, you are correct. But if you didn't file any claimed income, they'll catch you in a year or two then garnish your wages.
ninesevenfour 11/27/2020 5:17am
11/27/2020 5:17am
I’ve always wondered how many people just pick their friends as a winner and split the cash.
2
EngIceDave
Profile picture for user EngIceDave
Posts
2437
Joined
8/16/2006
Location
Merritt Island, FL US
EngIceDave 11/27/2020 5:25am
11/27/2020 5:25am
Running a Legal Raffle in the United States
In the United States, raffles (as well as lotteries and other forms of gambling) are controlled by a combination of state and federal law. That means that whether you're able to run a raffle, and what you have to do to ensure that raffle meets all legal requirements, varies depending on where you are located.



https://www.thebalanceeveryday.com/raffle-laws-in-the-us-and-canada-run….
EngIceDave
Profile picture for user EngIceDave
Posts
2437
Joined
8/16/2006
Location
Merritt Island, FL US
EngIceDave 11/27/2020 5:27am
11/27/2020 5:27am
I know this because we ran into some issues with a raffle at the track I worked at long ago
Adam43
Profile picture for user Adam43
Posts
3128
Joined
8/16/2006
Location
WF
Adam43 11/27/2020 8:50am
11/27/2020 8:50am
Highly, highly illegal unless properly registered with the state.

Otherwise, there is no mechanism to stop the seller from just giving the bike to their buddy. Or not giving it away at all, and pocketing the cash.

Everyone would sell their shit via raffle, or "waffle" if this wasn't the case.

Post a reply to: Waffles on FB