What actually happens when you hit the $20,000 in sales on the SCM

[Murray]

I have been looking around and the only answers I have found are people saying it will never happen. I am very involved in the SCM and might hit $20,000 in gross sales this calendar year. I have a list of questions below I am hoping I may get some answers for:

1. Does Steam notify you when you go over $20,000?
2. Does the money get automatically deducted from the balance or do I have to send in money via tax forms at a later date.
3. Is it taxed as income tax or capital gains. I buy the items from others and sell on the SCM, so on $20,000 in gross sales I might make only $7,500 profit.
4. Is it a taxable if it spent within Steam?

[eram]

Why am I being asked to provide tax information?

The United States Internal Revenue Service, under Section 6050W of the Internal Revenue Code, requires us to collect certain information from you if you engage in more than 200 separate sales transactions in a calendar year. In particular, if you are a U.S. citizen or resident, you will need to provide us with your name, address and Social Security Number, and if you are not a U.S. citizen or resident, you will need to provide evidence of your non-U.S. status on an online form we provide to you.

We will be providing a link to these forms and a process by which you can provide the needed information if and as you approach the 200 sales limit. We may use a third-party to collect this information. You can choose not to provide this information if you wish, but you will not be able to list any items for sale in the Community Market once you meet the 200 sales threshold, and any items listed will be removed.

Note that, while we are required to collect this information from you, we are not required to share this information with the IRS under Section 6050W unless you exceed $20,000 in gross sales in the Community Market within a single calendar year. For purposes of calculating the number of sales you have made in a calendar year, all of your accounts will be treated as a single account.


Will you be providing 1099’s based on my transactions in the Community Market?

The United States Internal Revenue Service requires us to report gross sales for, and provide IRS Form 1099’s to, only those subscribers who are U.S. citizens or residents and who exceed 200 sales transactions in a calendar year and also exceed $20,000 in gross sales proceeds from those sales transactions in that same calendar year, from all of the subscriber's accounts. If you are a U.S. citizen or resident and exceed both of these thresholds, we will report the amount of gross sales to the IRS and provide you with Form 1099.

Why do I have to provide additional documentation if I haven't reached 200 market sales?
We request this information early on so that you have time to fill it out accurately. Validation by the third party can take time, if you hit the 200 limit without the form validated you will not be able to sell additional items until validation is complete.


What if I choose not to provide or fill out the additional documentation?

You are not required to provide the additional documentation, however if you do not provide this information and reach 200 Market sales you will not be able to list additional items. You will still be able to purchase items from the Community Market as this form does not affect buying on the market.


Do I have any obligation to collect or pay sales, VAT, or other transaction taxes based on transactions I engage in in the Community Market?

Different countries have different rules relating to the taxation of digital transactions. Most jurisdictions do not require individuals to register for, collect or pay sales, VAT or use taxes in connection with occasional sales where they do not qualify as "professional" sellers. However, the ultimate responsibility for determining any tax requirements that may apply to sales you make in the Community Market rests with you, and so if you are concerned about the issue you should consult your own tax advisor. Note that, with respect to our administrative fee, if any sales, VAT, or other taxes are due on that payment, we will be responsible for paying those taxes.

https://support.steampowered.com/kb_article.php?ref=6088-UDXM-7214

[Heeby-Jeeby]

Originally posted by Murray | Trading Hiatus:

I have been looking around and the only answers I have found are people saying it will never happen. I am very involved in the SCM and might hit $20,000 in gross sales this calendar year. I have a list of questions below I am hoping I may get some answers for:

1. Does Steam notify you when you go over $20,000?
2. Does the money get automatically deducted from the balance or do I have to send in money via tax forms at a later date.
3. Is it taxed as income tax or capital gains. I buy the items from others and sell on the SCM, so on $20,000 in gross sales I might make only $7,500 profit.
4. Is it a taxable if it spent within Steam?

1. I do not know the answer to this.
2. They will provide you with a 1099 which you will be required to file with your tax return.
3. It is considered income tax.
4. It is still taxable because you are using that money to buy real things. A lot of people think Steam Wallet profit earned on the Steam Community Market should not be taxable because "it's not real money". But that money is real enough for you to purchase things which cost "real money" like games.

[Murray]

Originally posted by eram:

Why am I being asked to provide tax information?

The United States Internal Revenue Service, under Section 6050W of the Internal Revenue Code, requires us to collect certain information from you if you engage in more than 200 separate sales transactions in a calendar year. In particular, if you are a U.S. citizen or resident, you will need to provide us with your name, address and Social Security Number, and if you are not a U.S. citizen or resident, you will need to provide evidence of your non-U.S. status on an online form we provide to you.

We will be providing a link to these forms and a process by which you can provide the needed information if and as you approach the 200 sales limit. We may use a third-party to collect this information. You can choose not to provide this information if you wish, but you will not be able to list any items for sale in the Community Market once you meet the 200 sales threshold, and any items listed will be removed.

Note that, while we are required to collect this information from you, we are not required to share this information with the IRS under Section 6050W unless you exceed $20,000 in gross sales in the Community Market within a single calendar year. For purposes of calculating the number of sales you have made in a calendar year, all of your accounts will be treated as a single account.


Will you be providing 1099’s based on my transactions in the Community Market?

The United States Internal Revenue Service requires us to report gross sales for, and provide IRS Form 1099’s to, only those subscribers who are U.S. citizens or residents and who exceed 200 sales transactions in a calendar year and also exceed $20,000 in gross sales proceeds from those sales transactions in that same calendar year, from all of the subscriber's accounts. If you are a U.S. citizen or resident and exceed both of these thresholds, we will report the amount of gross sales to the IRS and provide you with Form 1099.

Why do I have to provide additional documentation if I haven't reached 200 market sales?
We request this information early on so that you have time to fill it out accurately. Validation by the third party can take time, if you hit the 200 limit without the form validated you will not be able to sell additional items until validation is complete.


What if I choose not to provide or fill out the additional documentation?

You are not required to provide the additional documentation, however if you do not provide this information and reach 200 Market sales you will not be able to list additional items. You will still be able to purchase items from the Community Market as this form does not affect buying on the market.


Do I have any obligation to collect or pay sales, VAT, or other transaction taxes based on transactions I engage in in the Community Market?

Different countries have different rules relating to the taxation of digital transactions. Most jurisdictions do not require individuals to register for, collect or pay sales, VAT or use taxes in connection with occasional sales where they do not qualify as "professional" sellers. However, the ultimate responsibility for determining any tax requirements that may apply to sales you make in the Community Market rests with you, and so if you are concerned about the issue you should consult your own tax advisor. Note that, with respect to our administrative fee, if any sales, VAT, or other taxes are due on that payment, we will be responsible for paying those taxes.

https://support.steampowered.com/kb_article.php?ref=6088-UDXM-7214

Is there any way to find out how much you have made this year in calendar sales or do you just have to keep track yourself?

[wuddih]

Originally posted by Murray | Trading Hiatus:

Is there any way to find out how much you have made this year in calendar sales or do you just have to keep track yourself?

you receive an email for every transaction
and
https://store.steampowered.com/account/history/
and
http://steamcommunity.com/market/#myhistory

there is nothing on steam that does the bookkeeping directly for you, so you have to use those sources to create your own.

the easiest way, because some taxjunkheads actually want to see them, is to organize the emails and run some parser over it to generate an overview.

if you dont have any coding skills, the 1st link luckily uses a html table, which you can import into excel or something. that should be managable without too much knowledge. it does not list every transaction directly and might not satisfy your taxagent, but it is a method.

[Murray]

Originally posted by wuddih:

Originally posted by Murray | Trading Hiatus:

Is there any way to find out how much you have made this year in calendar sales or do you just have to keep track yourself?

you receive an email for every transaction
and
https://store.steampowered.com/account/history/
and
http://steamcommunity.com/market/#myhistory

there is nothing on steam that does the bookkeeping directly for you, so you have to use those sources to create your own.

the easiest way, because some taxjunkheads actually want to see them, is to organize the emails and run some parser over it to generate an overview.

if you dont have any coding skills, the 1st link luckily uses a html table, which you can import into excel or something. that should be managable without too much knowledge. it does not list every transaction directly and might not satisfy your taxagent, but it is a method.

I'll take a look thank you!

[Murray]

Originally posted by wuddih:

Originally posted by Murray | Trading Hiatus:

Is there any way to find out how much you have made this year in calendar sales or do you just have to keep track yourself?

you receive an email for every transaction
and
https://store.steampowered.com/account/history/
and
http://steamcommunity.com/market/#myhistory

there is nothing on steam that does the bookkeeping directly for you, so you have to use those sources to create your own.

the easiest way, because some taxjunkheads actually want to see them, is to organize the emails and run some parser over it to generate an overview.

if you dont have any coding skills, the 1st link luckily uses a html table, which you can import into excel or something. that should be managable without too much knowledge. it does not list every transaction directly and might not satisfy your taxagent, but it is a method.

If I am not mistaken these are a good start but they do not calculate the tax steam takes out when items are put up for sale. Does the 15% tax count toward the $20k or is it the amount of money added to the steam wallet?