As a low income person, I appreciate this perspective. i am livid I have to get taxed for something I already purchased and decided to re-sell. Im not a fucking corporation, im just trying to make ends meet with a few extra dollars here and there.
@PUTRID HEAD i didnt undestood a word of what you said. but i just know that im not poor... my family is middle class but since taxes are high and it is really hard to get a job in my country we are with negative monthly income and we are doing the best to dont lose one of our two apartments (we have one in a big city and other in beach to travel and stay few months during the summer here)... we have been considering selling the big city one to buy another in the beach since we will put the other in rent to have income since nobody have income here.
I got audited once. They claimed I owed $6000. I had a professional that did my taxes and they went back and forth and back and forth for months. The letters from the IRS would never address his points, just come back with a new number. Finally they claimed I owed them $1600. My tax guy said it was still BS, but the court date was coming up. He said it was foolish to go to tax court without a lawyer, but that that would cost me way more than $1600, so the best thing to do was to just pay it. Great system, right?
@@felixwankel3989 that may win the moral battle, but it would cost infinitely more in actual money along with time and energy, even if it's shitty, just paying is better in the long run.
@@stardustspark5682 you may be right on the small, individual scale, but large scale it's this lack of recourse that keeps the current setup going. They won't bother changing the bullshit if they don't have a reason
@@Aedi You may think that but you are wrong. The IRS doesn't feel the pain of loss. In fact, a loss is actually a win for them. The more they use in legal expenses the greater increase in the following year's budget (paid by your tax dollars). It really is a no lose situation for them.
But the little guy keeps voting to not tax the rich and is anti worker union, and thinks that without those rich people we all won't find work. Timmy's gonna timmy
I got audited when me and my wife only made like $40k that year. They said we owed them like $2.5k. I did my taxes myself that year on TurboTax and must have done something they didn't like. I hired a tax professional to help us and it turned out the Feds actually owed us more money. LOL
I kind of expected Rudy to be a crazy Floridaman when he wasn't on camera so it's great to see that he's not one of those wackos with no capacity for empathy.
Was just thinking this, and then I saw this post. Same logic applies to prisons: more money to be made off of fucking over poor people instead of going after the big guys with the lawyers. Public defenders make incarceration money machine go brrrrr
For good reason, brother. The man sees it for what it is; essentially the signpost to our own country's failure long term. The notion that you get to stay number one by standing on the backs of the bruised, building castles on beautiful hills overlooking wastelands of poverty, we're getting to a point when it might take more out of us than just leaving a comment and a like. At some point we might need to Eat the Rich, skin them and hang their hides from brambles as a warning to the greedy.
@@uhrich11 Yeah or.. We don't murder people for being successful or because of what family they happened to be born in to.. Crazy idea I know but the last time it was tried 100 million people died as most competent people that where holding up civilization got shot. Also if you want to put up a warning to the greedy then there are few people more greedy than communists that live their lives full of envy and want for what others have without working to improve themselves. A much better, more human and less downright evil option would be to simplify the tax codes to reduce loop holes and implement flat tax systems to remove the motivation to engage in tax evasion.
@@dailytact1370 Yeah, when they simplify the tax code, I'll DM you to say sorry. Those poor poor rich victims! Homeless kids didn't ask either, the difference is one group (the uber-rich billionaires you're so sympathetic towards) could help, could fix it and not even feel it on their balance sheets .....but they don't! They watch those kids starve in the street while I drive around Sac with blankets and sandwiches to hand out, despite not even being anywhere near a millionaire! Standing by while our nation has more children dying of hunger while having more than enough to fix it is complicity, and saying that "oh, this is an easy fix, the entrenched power systems that intentionally prey on the powerless can just be easily changed, then it'll be great!" Welcome to Earth and Get Fucked.
@@mmcrypto.4726 Maybe I'm dumb, but I don't get it. I don't trade crypto, I'm not a bot, and I wasn't trying to insult you. I don't think that "poor people are easier targets" is a good thing, nor I do think that you think that, but it is a truth that, in this case, the IRS was using against poor people.
He has said he won't go much longer... Mtg prices will react when he announced he's done. I savor videos like this as on of those people that sells $700 worth of cards a year. Thanks Rudy.
Great video. As someone with extensive tax accounting knowledge people are so scared when they get any kind of letter from the IRS. All they have to see it is from the IRS and they freak out without even having read it. 98% of letters my clients have gotten were completely harmless and just mentioned one errant reported item. People, don't just pay the bill. Ask a professional and a majority of the time you end up saving a huge amount of money.
Just wait until we have a fed coin or digital currency. They will tax you at yard sales. They will know how you spend and what you spend your money on. Then they will link up with facebook and amazon to feed you ads even more so. Then they will give you a time limit for your ubi check so it increases m2 money stock to keep the economy inflated.
People think it’s funny until it affects them. Same people who vote to raise property taxes, then piss themselves when their rent goes up. This will eventually affect you, going after E girls seems funny, until the IRS broad strokes all of us and we’re left in the gutter.
It's so refreshing to hear someone who's actually independently wealthy scream about the bullshit people who aren't have to put up with. Thank you Rudy for understanding still what it's like despite your current financial status
He started as one of us, the little guys, who get run over. The people who aren't getting handouts for everything, but also aren't so rich the rest doesn't matter.
Been saying it for awhile now..... Save your Gold,Guns, Antiques, collectables ect... The more we keep just printing funny money the less it's worth and these things will maintain/increase value.
@@DrJack144 funny n00b, you think it's 1 'evil' party. Good job falling for the scam. Its on BOTH sides and if you think one party is more 'righteous ' than the other....you are delusional.
@@GleasonB lol it is one evil party, "the bank" runs everything, always has, always will. everything else is just a smoke show. you just have to see past the smoke to see the path forward.
If you read up on the various instances of hyperinflation (eg Germany, Hungary, Zimbabwe and Venezuela) you see how unreliable non-producing assets are at helping you. Guns perhaps, for protection, but again look at the recorded instances of hyperinflation to see that it doesn't necessarily lead to massive civil unrest where it really matters.
Also, at 10:49, that one line about "they assume your cost basis is zero because you didn't report it" THAT is literally, the thing like, the big, capital T thing about this law. People are going to be hammered for taxes they don't actually owe because all the money made on a sold MtG card was not profit--you had to buy it and maybe if you're lucky, your profit's roughly half the cost you spent on the card. The end result is a person is pinged for potentially double the taxes they actually owe because they are too small to bother recording their four big sales during a year. This is a heckin catastrophe for that exact reason.
Yep. The problem is that in theory, the goal of the IRS is to contribute to the financial/economic welfare of the US, but it uses methods which cause substantial economic damage to individuals who would recirculate that money anyway.
@@DrJack144 Lots of things are cheaper if you know how to do it. Working on your own car, repairing your computer, drywall, plumbing, etc. A lot of people don't want to learn about taxes. Would be nice if they didn't get absolutely fucked for it, that shit is boring as hell.
@@Bynming in addition, a lot of people can't learn taxes with a reasonable amount of effort for a lot of reasons. They might be illiterate (this affects far more people than one might think), have a language barrier, are not intellectually capable of studying long texts with many technical terms or numbers, have disabilities, etc.. They might also be stuck in 3 different dead end jobs to make things meet and prefer to spend the 30mins of free time they have in their day masturbating and crying themselves into sleep. The amount of work someone with a difficult start would have to put in to make a correct and informed tax report for the sale of a few hundred Dollars worth of stuff is ridiculous. These are not business owners who are working on their long term goals.
@@aaronprinz7334 Can definitely agree. My mom is a business owner, she's brilliant but she delegates everything that has to do with accounting and she's only in charge of the operations. She doesn't want to deal with the money. It's a weird approach but taxes and accounting freak her out.
@@Bynming you need to also look at the shadier aspects of it, such as Turbotax lobbying for years and years to prevent the government from instituting simple tax forms, so that dumb or lazy people will just go the path of least resistance and let turbotax/tax firms handle their stuff for them. it could be condensed down to a couple of pages but instead requires a shitload more effort, and people who benefit from it being complicated aim to keep it that way. death to lobbyists
Starting a small business in the last 6 months, the government makes it as hard as possible. Every step, there's a bureaucrat with his hand out demanding to get paid.
I don't think Rudy mentioned the Hobby Loss rules. That is probably where most people will get tripped up and end up owing tax. It's one thing for a professional like Rudy to be selling and quite another for someone who buys and sells cards without certain rules being met to qualify you for deductibility of expenses.
I need to know this. I was never going to meet that threshold and now I do. I just looked at a copy of the 1099-k that PayPal will send you and it looks intimidating. It basically looks like they count the entire transaction as profit and you have to tell them somewhere magically else otherwise. And as an individual I’m not seeing that place. And if you normally get the standard deduction instead of itemized I can’t tell if it’s even an option at all.
I love this video, this is my favorite Rudy video of all time. Angry homeless Rudy all fired up in his parents basement clutching Satanic magic cards, offering people popsicles.
This really sucks, I used to spend summers flipping electronics from goodwill and savers and boy I sure didn't report this on my taxes, I didn't make much profit, and I sure didn't save receipts lol
You have absolutely nothing to worry about if it's cash p2p sales. PayPal only sends a 1099 when you've sold $20k or more AND 200 transactions. They will never come after you for a magic card sale. It's the same reason everyone can have a yard sale and not pay taxes on it. The IRS doesn't have thr resources to go after every person who sells something they own.
@@ApexZer0 Clearly you didn't. He's saying the irs is going after someone who sold an $800 card online and that paypal will send you a 1099. News flash, they don't.
@@lizmyers469 news flash , THE LAW JUST CHANGED from 20k as you mentioned above, to $600 dollars. Thats why he's flipping out. WATCH THE FUCKING VIDEO.
Your a good dude Rudy. The world needs more people like you. If I ever come back to visit Florida from Canada, I'd buy you a beer any day. Keep teaching the people and saying what needs to be said. Cheers and may the Tacos be tasty.
Dude. Rudy just saved my ASS. I'm on disability and I've been playing mtg for a while. I made some good purchases, what? 5 however many years ago.. when my Gaea's Cradle was NM for around $120.. couple revised duals for edh decks at or around $80-$100. Etc. Nothing huge or in quantity, but what I could afford, when I could for decks kinda thing. Anyway I was just thinking hard on doing a big liquidation on Ebay. One of the only ways I can keep my head above water on, say $1000 a month. Was gonna dump that into Crypto. Man the boot heel is coming down on anyone trying to scrape and claw their way out of poverty by doing smart meager investment stuff. I can't buy stock, I can't cash in crypto, now Ebaying mtg cards??? Wow. Fuck you oligarchy. This is why it drives me nuts when people argue and loose friendships over dumb partisan politic crap. We're fighting amongst ourselves for SCRAPS here. Now they're after the scraps, HARD. Fuck. Anyway God Bless you Rudy!! Whatever God, old gods, eldrich, whatever you want, may they bless you further my good man.
This is sad. I can't operate anymore. I would sell cards here and there on Facebook. But the fact you can get fucked for taxes on full value. Its really hard to prove the cost basis. So that's going to make it very hard for the small online sellers
Actually, it's really simple to prove the cost basis. It's just a matter of how well you kept up with the paperwork, and the time involved (especially if you haven't). At the end of the day, some people commenting on this video are starting to blur the lines between not reporting income and paying taxes on that income vs getting audited. The IRS audits around 2% of the tax returns that get filled annually. Most of them are automatically triggered by specific scenarios that just seem "strange". Returns with all perfectly rounded numbers on them, returns from businesses always operating at a loss, or worse dead even. Just scenarios that don't mathematically seem very likely. That makes your odds of being in the 2% much much higher. Getting attention from the IRS goes up like crazy when someone like PayPal or Sqaure reports a 1099 that you don't include in your return. It's easy. If you sold $4000 worth of magic cards on eBay, and took that money in via PayPal, then all you have to do is report that 1099 and pay the required amount of tax. It's not like your going to automatically have to send in a detailed cost basis report on everything you did in business on that 1099.... at some point, you MIGHT have to produce that.... but it's not going to be automatic. This is just saying.... hey... PayPal told us you made $4000 on a 1099 from them. You didn't report that 1099 and might have owed taxes on it. They send out a generic letter saying.. hey... here's the options. The real option is to have your tax return amended (if you don't really owe taxes on that money anyways) or if you DO owe the taxes... just pay them.
@@dom19945 That's ramen for a couple of weeks buddy. I don't think you understand what it's like to be truly poor in this country. $20 is someone's grocery bill
I got audited because my kids moms didn't change her and the kids address. So when I claimed MY kids it looked like they wasn't living with me. I took half of those taxes up front so when i got audited i owed the government $930 and i owed a loan company 4.5k. I have taken care of my kids since day one but yet the gov. Feels since i couldnt prove they lived with me for 6 month of that year I deserve debt and stress.
A significant part of the problem here is that Congress cuts the budget of the IRS to the point that they can't go after wealthy folks who lawyer up. It's kind of like the public defender problem-when you're understaffed, you're just not going to be able to do a good job at complicated tasks. I remember reading some reports a couple years back about the IRS auditing division focused on tax evasion for high-wealth / high-income folks. My memory is that studies on the IRS agents in this division showed that each employee was earning the US government something like $60,000 per HOUR because of how much money they could recoup from high net worth folks avoiding taxes. But if you don't have the infrastructure to support that division because your agency's funding keeps getting cut, you lose the ability to go after good targets and you have to go after bad targets who (1) won't fight back, (2) are worth very little in terms of bringing money into the government, and (3) are hurt phenomenally more by this process than high net worth folks would be hurt if the process were directed toward them. Same thing happens with OSHA: you stop funding them and they end up having to let industries write their own regulations and do their own inspections, because they just don't have the manpower to do the things they're legally required to do any other way. We need to stop voting for people who just want to defund the government, because this is exactly what happens whenever we defund the government. Cutting government expenses only works when its part of a program of streamlining services; it doesn't work when you leave the whole mission in place but stop providing enough funding to execute that mission.
tell that to republicans. you've got little folks like aoc starting to take a bite out of the establishment, but they're still a small minority of the entire caucus. it's good that things like that can happen though, uprooting significantly established assholes and replacing them with working stiffs like you or I.
Time to take it back. From both parties that are both corrupt and both don't do shit for anyone accept make people pretend its done party or the other and divide us so we wont actually fight back
Great video Rudy. It just seems like the oddest thing to focus on with the everything else going on in our system. Thanks for picking up on this, I hadn't heard about it before.
So glad you tackled this. This really is quite sad, even though in a way I'm not too shocked as the IRS has always been the biggest bully out there. They make people like John Gotti seem good and honest.
Same here in Saudi Arabia when they raised salaries or raised stimulus checks. Businessmen raised the prices for no reason but thankfully the government forced them not to do that.
I’ll be honest. I love watching your videos of card openings but I prefer hearing you talk about the market and real issues that effect people. I wish we were friends you would be a huge influence.
Why should the small people be paying their fair share when the rich people are paying nothing? That's the big problem. If the rich people paid what they should, nobody'd care about the person who didn't report 600$.
Agree 100% with you. Great presentation and would love to see more videos like this on your take of the economic status and relation to the hobby in the future.
Great video.. Something needs to be done about this... Another fact I would like to add on is why does everyone have to pay sales tax on a new item or an old item that has had the sales tax already paid? I buy a unopened blaster box from a guy from Texas that he already paid sales tax on then I have to pay my state's sale tax on the same item. Then when I resell it back to a guy in Texas he has to repay sales tax on that. Where does it end? I get that a new un-opened/used item should be taxed once, but why does it get keep getting taxed over and over? If I buy a new car for 30,000, I have to pay the taxes on that 30,000. When I sell the car 2 years later for 22,000 now that guy has to pay taxes on the same car? I don't get it and I don't think that's how our founding fathers set things up in the first place. Over taxation without representation is why we rebelled from the British, right?
If the reason my taxes are being delayed and I haven't gotten a single stimulus is because of selling a couple cards and not filing a form I am going to be beyond tilted
I really appreciate this type of content... I’m not into magic or card games, but I enjoy your passion and your take on markets. I have a lot of respect for your understanding of tax liability!
As a "poor" grad student, I took all of my stimulus and immediately invested it in inflation-proof assets that just so happened to increase 20x in value. Either that or the value of the dollar is 20x less XD
Best Alpha Investments video, I really enjoy the old MtG collections and all that but this is really important topic and I'm glad you talk about this. More people need to watch this.
It's important to note that the IRS used to strongly go after larger corporations for attempting to evade their taxes. However as a result, certain interest groups and political affiliates decided they didn't like that their donors were getting hit with fees and suits for breaking the law and avoiding paying their due. So to "rectify" this they cut the IRS's budget drastically, more than once mind you. This means they no longer have the resources to maintain their retinue that would be processing the information from large corporations and handling lawsuits and investigations that get tied up for extended periods of time and cost them more money in the long run. As a result, they're stuck focusing primarily on people of lower income brackets. As you stated and as was stated in the interview, they don't have the ability to tie things up in months of court and extensive fees. They additionally don't have lobbying powers that allow them to talk to the right people to have their funding cut if they even think of collecting taxes that are owed. Unless tax laws, special tax breaks, and things like that are drastically reversed, and funding is returned to the IRS in addition to giving them time to bring on new employees.. well.. get used to the new norm. Also get used to your new taxes for those of you who found yourselves in a new tax bracket this year, my roommate makes a couple dollars above minimum wage in the state and found himself in a 10% higher tax bracket than last year. If not for the stimulus tied to his taxes he would've owed around 800 dollars, and his company didn't decide to stop social security withholding because they knew it was a stupid idea that would just hit people in tax time. Get ready for next year's hike while you're at it unless things change.
I blame the regular voter, they keep voting for their local reps that say taxing companies is bad but taxing average people is ok. Both sides of the isle have this issue but keep on voting for or against culture war nonsense and ignoring the real issues in the country people.
I loved this video but it got me thinking. You mentioned that you have 8 figures of magic inventory. What happens when your inventory (lets say the bulk of it... the real heavy hitters) appreciates to a value where the only people buying it are people like you who have the large positions of it... and they no longer have the appetite to accumulate more of it? What do you do in 20 years when nobody wants to buy a $150,000 box of Uzas saga... and you have $50m in inventory nobody can afford? Isn’t that a dangerous situation to be in? I just want to understand... what’s the tipping point when you have all the “unobtainium” and nobody can afford it anymore? Thanks again for the video, more like this... people need to know what’s really up. These politicians aren’t fighting for us, they are milking us while patting us on the head.
Still one of my favorite Rudy Videos. It is going to happen exactly the way it is described. I can see it already when i talk to people about this subject...
As a low income person, I appreciate this perspective. i am livid I have to get taxed for something I already purchased and decided to re-sell. Im not a fucking corporation, im just trying to make ends meet with a few extra dollars here and there.
@@joshn2342323 Your comment gets the dunce award. Great job!
@@DarkPaladin1130 doesnt anyone get that this comment was sarcastic?
@@SupermotoNL A bad joke told ironically is still a bad joke.
@@kavky just because it flew over your head doesnt mean its bad. Slapstick american humor doesnt apply here.
@PUTRID HEAD i didnt undestood a word of what you said. but i just know that im not poor... my family is middle class but since taxes are high and it is really hard to get a job in my country we are with negative monthly income and we are doing the best to dont lose one of our two apartments (we have one in a big city and other in beach to travel and stay few months during the summer here)... we have been considering selling the big city one to buy another in the beach since we will put the other in rent to have income since nobody have income here.
I got audited once. They claimed I owed $6000. I had a professional that did my taxes and they went back and forth and back and forth for months. The letters from the IRS would never address his points, just come back with a new number. Finally they claimed I owed them $1600. My tax guy said it was still BS, but the court date was coming up. He said it was foolish to go to tax court without a lawyer, but that that would cost me way more than $1600, so the best thing to do was to just pay it. Great system, right?
No, hire the fucking lawyer.
@@felixwankel3989 that may win the moral battle, but it would cost infinitely more in actual money along with time and energy, even if it's shitty, just paying is better in the long run.
@@stardustspark5682 you may be right on the small, individual scale, but large scale it's this lack of recourse that keeps the current setup going. They won't bother changing the bullshit if they don't have a reason
@@Aedi one lost case isn’t enough of a reason. 10,000 lost causes aren’t enough of a reason
@@Aedi You may think that but you are wrong. The IRS doesn't feel the pain of loss. In fact, a loss is actually a win for them. The more they use in legal expenses the greater increase in the following year's budget (paid by your tax dollars). It really is a no lose situation for them.
I appreciate that Rudy gets angry for the little guy
In the sea of big fishes, he still is. And comparatively, we are microbes at that level. LOL
me too.
F*** YEAH
But the little guy keeps voting to not tax the rich and is anti worker union, and thinks that without those rich people we all won't find work. Timmy's gonna timmy
@@aesmaui I understand skepticism for public sector unions but Ill never understand the people against amazon employees unionizing.
I got audited when me and my wife only made like $40k that year. They said we owed them like $2.5k. I did my taxes myself that year on TurboTax and must have done something they didn't like. I hired a tax professional to help us and it turned out the Feds actually owed us more money. LOL
am i crazy, or is this the best alpha investments video yet? this is the kind of anger I did not expect to see--and it's pretty awesome.
I kind of expected Rudy to be a crazy Floridaman when he wasn't on camera so it's great to see that he's not one of those wackos with no capacity for empathy.
It's a toss up between this and the video Rudy made talking about his origins and what led up to Alpha Investments.
Was just thinking this, and then I saw this post. Same logic applies to prisons: more money to be made off of fucking over poor people instead of going after the big guys with the lawyers. Public defenders make incarceration money machine go brrrrr
This needs to go trending on a National level.
global
@@Omnip073n77 yeah you really made it effortless to understand from elderly to toddlers
Probably the first time in my life "Poor People." has been the title of online content and it was actually good content.
Right?!
This is probably your most important video to date. I appreciate you take a stand even if never has a significant impact on your business.
Holy shit THIS is the UNREGULATED, UNLAWFUL, UNCENSORED, HARD SHELL TACO video we need.
Unaudited*
New "Un" set confirmed.
The move from 20k to 600 came entirely from the party that claims to be looking out for the little guy, yet never actually does.
When does this take place?
@@tomioka2755 2021 taxes. So not the ones you will be filling in April, but the ones you'll do next year.
because everyone wanted that 2k check big daddy Biden promised
@@fernandomarroquin8901 Yep. And how long is it going to take for higher gas and food prices to use up the 1400 and more?
Surprised pikachu face
This channel, rudy itself, needs more attention. This is so true. Thanks rudy for being so transparent and even thoughtful.
It's a class war. Always has been since day one.
This is the spiciest I've seen rudy in a long time.
For good reason, brother. The man sees it for what it is; essentially the signpost to our own country's failure long term. The notion that you get to stay number one by standing on the backs of the bruised, building castles on beautiful hills overlooking wastelands of poverty, we're getting to a point when it might take more out of us than just leaving a comment and a like. At some point we might need to Eat the Rich, skin them and hang their hides from brambles as a warning to the greedy.
Yeah, this taco definitely has the diablo sauce
@@uhrich11 Yeah or.. We don't murder people for being successful or because of what family they happened to be born in to.. Crazy idea I know but the last time it was tried 100 million people died as most competent people that where holding up civilization got shot. Also if you want to put up a warning to the greedy then there are few people more greedy than communists that live their lives full of envy and want for what others have without working to improve themselves.
A much better, more human and less downright evil option would be to simplify the tax codes to reduce loop holes and implement flat tax systems to remove the motivation to engage in tax evasion.
@@dailytact1370 Yeah, when they simplify the tax code, I'll DM you to say sorry. Those poor poor rich victims! Homeless kids didn't ask either, the difference is one group (the uber-rich billionaires you're so sympathetic towards) could help, could fix it and not even feel it on their balance sheets .....but they don't! They watch those kids starve in the street while I drive around Sac with blankets and sandwiches to hand out, despite not even being anywhere near a millionaire! Standing by while our nation has more children dying of hunger while having more than enough to fix it is complicity, and saying that "oh, this is an easy fix, the entrenched power systems that intentionally prey on the powerless can just be easily changed, then it'll be great!" Welcome to Earth and Get Fucked.
I hate the two parties we get to chose from. Madness, complacency, and corruption everywhere regardless of which side you pick.
Go check out how things are in Russia.
Rudy for president! "I'm not even a cat!"
Wonder who his vice president running mate would be...
Open boosters guy
Even I got a empty house in the Hamptons.
I would love to see him run and just speak truth to power the whole time and then talk about magic and staying the course. I would vote everytime
I would pay cardboard to see this.
This is deep... be careful Rudy... the man is watching!!!
Next thing you know the Government and the IRS will start showing up at yard sales.
@anthony villegas wow. Thats ridiculous
@anthony villegas 😱
This is already happening
My small 1k pop city in Michigan requires a permit for one...
Not like the 1 full time cop will give a shit but yeah. Fubar.
this is america 2021
"I'm not even a cat!"
I saw your grin, you know that was hilarious.
Commenting to boost the algorithm. More people NEED to see this.
"Poor people are easier targets" -- Rudy speaking the truth.
@@mmcrypto.4726 Maybe I'm dumb, but I don't get it. I don't trade crypto, I'm not a bot, and I wasn't trying to insult you. I don't think that "poor people are easier targets" is a good thing, nor I do think that you think that, but it is a truth that, in this case, the IRS was using against poor people.
@@JuanFelipeCalle that was a bot reply, not rudy
This is the reason this channel exists. God forbid Rudy ever does ride of into the sunshine. That will be a sad day.
Rudy will be like Prince Phillip and Betty White and outlive us all lol
Not until we all have our horses. Together strong
He has said he won't go much longer... Mtg prices will react when he announced he's done. I savor videos like this as on of those people that sells $700 worth of cards a year. Thanks Rudy.
No it won't. Ruby talks a bunch of shit for Timmys and that's it. If you think Ruby is so profound, then obviously you are a Timmy.
@@maxrobespierre7165 let's not forget Keith Richards as well. 🤣🤣
Great video. As someone with extensive tax accounting knowledge people are so scared when they get any kind of letter from the IRS. All they have to see it is from the IRS and they freak out without even having read it. 98% of letters my clients have gotten were completely harmless and just mentioned one errant reported item. People, don't just pay the bill. Ask a professional and a majority of the time you end up saving a huge amount of money.
Rudi for years "I don't discuss politics"
Rudi in 2021: "Hold my Taco!"
Actually nice Rant, emotional but also fact-based.
Thank you, for seeing clearly, being a self made Elite and still holding to your roots and speaking out about this. Respect.
They're comin' for that OnlyFans and private Snapchat revenue.
Its about time... and this is coming from a guy who has an onlyfans for the ladies.
Just wait until we have a fed coin or digital currency. They will tax you at yard sales. They will know how you spend and what you spend your money on. Then they will link up with facebook and amazon to feed you ads even more so. Then they will give you a time limit for your ubi check so it increases m2 money stock to keep the economy inflated.
People think it’s funny until it affects them. Same people who vote to raise property taxes, then piss themselves when their rent goes up. This will eventually affect you, going after E girls seems funny, until the IRS broad strokes all of us and we’re left in the gutter.
Hey Daddy-O... Have you heard about that Moist 1099? It's ready for you.
There are singe hot 1099s In your area. 😏
Thanks Rudy for standing up for us, people who are not a part of the 1%.
It's so refreshing to hear someone who's actually independently wealthy scream about the bullshit people who aren't have to put up with. Thank you Rudy for understanding still what it's like despite your current financial status
Why I appreciate Rudy. He's a together strong, genuine dude
He started as one of us, the little guys, who get run over. The people who aren't getting handouts for everything, but also aren't so rich the rest doesn't matter.
@@brandonkick no he didn't. His family had at least one successful restaurant when he was young. He has talked about working in it.
Thank you for volunteering as tribute for the poor people Rudy.
Been saying it for awhile now..... Save your Gold,Guns, Antiques, collectables ect... The more we keep just printing funny money the less it's worth and these things will maintain/increase value.
@@DrJack144 funny n00b, you think it's 1 'evil' party. Good job falling for the scam. Its on BOTH sides and if you think one party is more 'righteous ' than the other....you are delusional.
@@GleasonB lol it is one evil party, "the bank" runs everything, always has, always will. everything else is just a smoke show. you just have to see past the smoke to see the path forward.
@@benk2601 "hoard your guns and gold" is an inherently political statement lol
@@DrJack144 The Uniparty thanks you for your service, peasant.
If you read up on the various instances of hyperinflation (eg Germany, Hungary, Zimbabwe and Venezuela) you see how unreliable non-producing assets are at helping you. Guns perhaps, for protection, but again look at the recorded instances of hyperinflation to see that it doesn't necessarily lead to massive civil unrest where it really matters.
Also, at 10:49, that one line about "they assume your cost basis is zero because you didn't report it" THAT is literally, the thing like, the big, capital T thing about this law. People are going to be hammered for taxes they don't actually owe because all the money made on a sold MtG card was not profit--you had to buy it and maybe if you're lucky, your profit's roughly half the cost you spent on the card.
The end result is a person is pinged for potentially double the taxes they actually owe because they are too small to bother recording their four big sales during a year. This is a heckin catastrophe for that exact reason.
They go after the little people as they are not financially able to fight back.
Yep. The problem is that in theory, the goal of the IRS is to contribute to the financial/economic welfare of the US, but it uses methods which cause substantial economic damage to individuals who would recirculate that money anyway.
@@DrJack144 Lots of things are cheaper if you know how to do it. Working on your own car, repairing your computer, drywall, plumbing, etc. A lot of people don't want to learn about taxes. Would be nice if they didn't get absolutely fucked for it, that shit is boring as hell.
@@Bynming in addition, a lot of people can't learn taxes with a reasonable amount of effort for a lot of reasons.
They might be illiterate (this affects far more people than one might think), have a language barrier, are not intellectually capable of studying long texts with many technical terms or numbers, have disabilities, etc..
They might also be stuck in 3 different dead end jobs to make things meet and prefer to spend the 30mins of free time they have in their day masturbating and crying themselves into sleep.
The amount of work someone with a difficult start would have to put in to make a correct and informed tax report for the sale of a few hundred Dollars worth of stuff is ridiculous.
These are not business owners who are working on their long term goals.
@@aaronprinz7334 Can definitely agree. My mom is a business owner, she's brilliant but she delegates everything that has to do with accounting and she's only in charge of the operations. She doesn't want to deal with the money. It's a weird approach but taxes and accounting freak her out.
@@Bynming you need to also look at the shadier aspects of it, such as Turbotax lobbying for years and years to prevent the government from instituting simple tax forms, so that dumb or lazy people will just go the path of least resistance and let turbotax/tax firms handle their stuff for them. it could be condensed down to a couple of pages but instead requires a shitload more effort, and people who benefit from it being complicated aim to keep it that way.
death to lobbyists
Rudy in his ivory basement, looking out for us carrots. Cheers dude
🥕
lmao @"ivory basement"
Your right dude! It’s ridiculous that the answer would be to tax the poor! It’s like they always say the rich get richer while the poor get poorer :(
That speech made me a fan for life.
Your the taco we need!
Jokes aside, it’s heartbreaking what’s happening to people and thank you for speaking up.
Well that's disturbing. My small time eBay store allowed me to not have to work a job throughout med school.
How did u manage an eBay store while going thru medschool? What did you sell?
"Why no one does anything about it?" I'm sure a rhetorical, but are there any politicians in DC making less than 6 figures?
"I'm not even a cat" should be your next t-shirt.
Yes pls
It sounds like IRS audits come across as shakedowns. They come in and hit you with a ridiculously high number that you have to prove you don't owe.
Well....yeah? Governments always have been nothing but legitimized mafias.
'And I'm not even a cat' - Things a cat would say for $500 Alex.
That was a great reference to DeepFuckingValue in the RobinHood congressional hearing
Starting a small business in the last 6 months, the government makes it as hard as possible. Every step, there's a bureaucrat with his hand out demanding to get paid.
I don't think Rudy mentioned the Hobby Loss rules. That is probably where most people will get tripped up and end up owing tax. It's one thing for a professional like Rudy to be selling and quite another for someone who buys and sells cards without certain rules being met to qualify you for deductibility of expenses.
I need to know this. I was never going to meet that threshold and now I do. I just looked at a copy of the 1099-k that PayPal will send you and it looks intimidating. It basically looks like they count the entire transaction as profit and you have to tell them somewhere magically else otherwise. And as an individual I’m not seeing that place. And if you normally get the standard deduction instead of itemized I can’t tell if it’s even an option at all.
I love this video, this is my favorite Rudy video of all time. Angry homeless Rudy all fired up in his parents basement clutching Satanic magic cards, offering people popsicles.
This really sucks, I used to spend summers flipping electronics from goodwill and savers and boy I sure didn't report this on my taxes, I didn't make much profit, and I sure didn't save receipts lol
Pro tip its impossible to track person to person cash transactions
You have absolutely nothing to worry about if it's cash p2p sales. PayPal only sends a 1099 when you've sold $20k or more AND 200 transactions. They will never come after you for a magic card sale. It's the same reason everyone can have a yard sale and not pay taxes on it. The IRS doesn't have thr resources to go after every person who sells something they own.
@@lizmyers469 clearly you didn't watch the video
@@ApexZer0 Clearly you didn't. He's saying the irs is going after someone who sold an $800 card online and that paypal will send you a 1099. News flash, they don't.
@@lizmyers469 news flash , THE LAW JUST CHANGED from 20k as you mentioned above, to $600 dollars. Thats why he's flipping out.
WATCH THE FUCKING VIDEO.
Your a good dude Rudy. The world needs more people like you. If I ever come back to visit Florida from Canada, I'd buy you a beer any day. Keep teaching the people and saying what needs to be said. Cheers and may the Tacos be tasty.
Dude. Rudy just saved my ASS. I'm on disability and I've been playing mtg for a while. I made some good purchases, what? 5 however many years ago.. when my Gaea's Cradle was NM for around $120.. couple revised duals for edh decks at or around $80-$100. Etc. Nothing huge or in quantity, but what I could afford, when I could for decks kinda thing. Anyway I was just thinking hard on doing a big liquidation on Ebay. One of the only ways I can keep my head above water on, say $1000 a month. Was gonna dump that into Crypto. Man the boot heel is coming down on anyone trying to scrape and claw their way out of poverty by doing smart meager investment stuff. I can't buy stock, I can't cash in crypto, now Ebaying mtg cards??? Wow. Fuck you oligarchy. This is why it drives me nuts when people argue and loose friendships over dumb partisan politic crap. We're fighting amongst ourselves for SCRAPS here. Now they're after the scraps, HARD. Fuck. Anyway God Bless you Rudy!! Whatever God, old gods, eldrich, whatever you want, may they bless you further my good man.
The new camera is awesome. We can finally get videos longer than 10 minutes.
Praise President Timmy.
Thanks for speaking up for the little guy. How do we fix it? Who ever down voted this needs a controlled pair.
This is sad. I can't operate anymore. I would sell cards here and there on Facebook. But the fact you can get fucked for taxes on full value. Its really hard to prove the cost basis. So that's going to make it very hard for the small online sellers
Actually, it's really simple to prove the cost basis. It's just a matter of how well you kept up with the paperwork, and the time involved (especially if you haven't).
At the end of the day, some people commenting on this video are starting to blur the lines between not reporting income and paying taxes on that income vs getting audited.
The IRS audits around 2% of the tax returns that get filled annually. Most of them are automatically triggered by specific scenarios that just seem "strange". Returns with all perfectly rounded numbers on them, returns from businesses always operating at a loss, or worse dead even. Just scenarios that don't mathematically seem very likely. That makes your odds of being in the 2% much much higher.
Getting attention from the IRS goes up like crazy when someone like PayPal or Sqaure reports a 1099 that you don't include in your return.
It's easy. If you sold $4000 worth of magic cards on eBay, and took that money in via PayPal, then all you have to do is report that 1099 and pay the required amount of tax.
It's not like your going to automatically have to send in a detailed cost basis report on everything you did in business on that 1099.... at some point, you MIGHT have to produce that.... but it's not going to be automatic.
This is just saying.... hey... PayPal told us you made $4000 on a 1099 from them. You didn't report that 1099 and might have owed taxes on it. They send out a generic letter saying.. hey... here's the options. The real option is to have your tax return amended (if you don't really owe taxes on that money anyways) or if you DO owe the taxes... just pay them.
@@brandonkick is it going to be like that for the states only or for other countries as well?
This side of Ruddy is why I'm here.
Also Tacos.
Thanks bro, you have very elegant and accurate way of explaining how the government has never liked poor people
My favorite video on this channel. Tell em Rudy. 👏
Videos like this are why I keep watching you Rudy. I don't even play magic.
Didn’t think I’d see the day my floppy tacos brought all the IRS Auditors to the yard... damn it! :(
So if I sell grandma's dinner table for $600 on ebay, the IRS wants my left testical? "Please sir, I want some more" - said every Timmy ever
They'll want you to file it and you'll have to pay like $20 in taxes.
Seriously. That's it.
@@dom19945 That's ramen for a couple of weeks buddy. I don't think you understand what it's like to be truly poor in this country. $20 is someone's grocery bill
@@thestranger3434 not to mention it's straight up theft.
make them pay in cash problem solved
The older I get, the more I hate taxes. The government is a financial black hole with only one answer: needs more money.
I got audited because my kids moms didn't change her and the kids address. So when I claimed MY kids it looked like they wasn't living with me. I took half of those taxes up front so when i got audited i owed the government $930 and i owed a loan company 4.5k. I have taken care of my kids since day one but yet the gov. Feels since i couldnt prove they lived with me for 6 month of that year I deserve debt and stress.
I have lots of respect for you Rudy, you are on point all the time, I learn lots and enjoy seeing someone like you say it how it freaking is.
A significant part of the problem here is that Congress cuts the budget of the IRS to the point that they can't go after wealthy folks who lawyer up. It's kind of like the public defender problem-when you're understaffed, you're just not going to be able to do a good job at complicated tasks.
I remember reading some reports a couple years back about the IRS auditing division focused on tax evasion for high-wealth / high-income folks. My memory is that studies on the IRS agents in this division showed that each employee was earning the US government something like $60,000 per HOUR because of how much money they could recoup from high net worth folks avoiding taxes. But if you don't have the infrastructure to support that division because your agency's funding keeps getting cut, you lose the ability to go after good targets and you have to go after bad targets who (1) won't fight back, (2) are worth very little in terms of bringing money into the government, and (3) are hurt phenomenally more by this process than high net worth folks would be hurt if the process were directed toward them.
Same thing happens with OSHA: you stop funding them and they end up having to let industries write their own regulations and do their own inspections, because they just don't have the manpower to do the things they're legally required to do any other way. We need to stop voting for people who just want to defund the government, because this is exactly what happens whenever we defund the government. Cutting government expenses only works when its part of a program of streamlining services; it doesn't work when you leave the whole mission in place but stop providing enough funding to execute that mission.
Thank you so damn much for always sharing what's on your mind.
Would love to see Rudy talk to Congress and give that speech. Vote for Rudy!
The government should work for the people, not against the people!
tell that to republicans. you've got little folks like aoc starting to take a bite out of the establishment, but they're still a small minority of the entire caucus. it's good that things like that can happen though, uprooting significantly established assholes and replacing them with working stiffs like you or I.
Time to take it back. From both parties that are both corrupt and both don't do shit for anyone accept make people pretend its done party or the other and divide us so we wont actually fight back
Great video Rudy. It just seems like the oddest thing to focus on with the everything else going on in our system. Thanks for picking up on this, I hadn't heard about it before.
God damn selling guitars, cards and action figures is going to be more of a hassle than I want. Only in person and cash sales from here on out.
It's gonna be literally under the table.
I follow this model always
So glad you tackled this. This really is quite sad, even though in a way I'm not too shocked as the IRS has always been the biggest bully out there. They make people like John Gotti seem good and honest.
Preach my man🙌🏻🙌🏻🙌🏻 this is why I am here and this is why I’ll stay.
I love the Rudy rants. I hope you never leave CZcams
Bravo Rudy!!! The 6 dislikes are Timmy's that didn't understand what you said.
IRS employees
@@mmcrypto.4726 No, I am not going to ship you money to an AirBnb so your mule can ship it to India or buy ITunes Gift cards. Not today Satan.
Probably the people that added that line to the law.
"Rudy thinks im poor!??!?! fuck him. dislike"
Rudy is like the little guys really cool older brother who gave you his cards when he moved on from cards but still shows mad love.
"Poor People" Finally a Subject Rudy Knows About!!
Dude has millions of dollars in alpha cards ALONE
You do realize he is a millionaire. Did you even watch the vid?
Same here in Saudi Arabia when they raised salaries or raised stimulus checks. Businessmen raised the prices for no reason but thankfully the government forced them not to do that.
I’ll be honest. I love watching your videos of card openings but I prefer hearing you talk about the market and real issues that effect people. I wish we were friends you would be a huge influence.
Rudy not having to reset his camera at the 10 min mark because he got a new camera makes me feel uncomfortable.
Rudy, reach out and touch me.
Yea right!! So weird!
Why should the small people be paying their fair share when the rich people are paying nothing? That's the big problem. If the rich people paid what they should, nobody'd care about the person who didn't report 600$.
The powers that be always will care, cause its not about paying your fair share, its about them controlling you, thats it
Never play magic but I watch every video... You're a hero man.
rudys going off dropping f-bombs! i love it!
More videos like this please. Great one here. Humanity needs more people speaking out about corruption.
I'm not sure if I have ever heard Rudy be so passionate about anything that it made him swear.
that means it's serious business...
Agree 100% with you. Great presentation and would love to see more videos like this on your take of the economic status and relation to the hobby in the future.
Rudy sticking up for the lil Timmy's God bless your soul
Great video.. Something needs to be done about this... Another fact I would like to add on is why does everyone have to pay sales tax on a new item or an old item that has had the sales tax already paid? I buy a unopened blaster box from a guy from Texas that he already paid sales tax on then I have to pay my state's sale tax on the same item. Then when I resell it back to a guy in Texas he has to repay sales tax on that. Where does it end? I get that a new un-opened/used item should be taxed once, but why does it get keep getting taxed over and over? If I buy a new car for 30,000, I have to pay the taxes on that 30,000. When I sell the car 2 years later for 22,000 now that guy has to pay taxes on the same car? I don't get it and I don't think that's how our founding fathers set things up in the first place. Over taxation without representation is why we rebelled from the British, right?
⛏🔨 rudy is waking to our cruel economic machinery in practice.
Rudy for the people. Fight the power everyone. Stay strong in the years to come.
If the reason my taxes are being delayed and I haven't gotten a single stimulus is because of selling a couple cards and not filing a form I am going to be beyond tilted
I sold some but still recieved stimulus
I just lied and got mine and a few other folks $$$
I really appreciate this type of content... I’m not into magic or card games, but I enjoy your passion and your take on markets. I have a lot of respect for your understanding of tax liability!
As a "poor" grad student, I took all of my stimulus and immediately invested it in inflation-proof assets that just so happened to increase 20x in value.
Either that or the value of the dollar is 20x less XD
out of curiosity what did you invest in?
A little of column A, a little of column B
Metazoo
roblox
@@eydflowers234 Digital monopoly money
Best Alpha Investments video, I really enjoy the old MtG collections and all that but this is really important topic and I'm glad you talk about this. More people need to watch this.
"The stimulus bill has made the first 20k in online sales untaxable" would have been a whole lot fucking cooler.
But then how would they make the poor pay them back for that stimulus?
Would have been a real stimulus, for people trying to create small businesses as things open back up this year.
Good rant, Rudy. 100% feeling ya on this. It is ridiculous they pushed this as a priority vs the other 10000 things
Excuse me you sold a ton of GI Joe's from your childhood, we would like receipts.
It's important to note that the IRS used to strongly go after larger corporations for attempting to evade their taxes. However as a result, certain interest groups and political affiliates decided they didn't like that their donors were getting hit with fees and suits for breaking the law and avoiding paying their due. So to "rectify" this they cut the IRS's budget drastically, more than once mind you.
This means they no longer have the resources to maintain their retinue that would be processing the information from large corporations and handling lawsuits and investigations that get tied up for extended periods of time and cost them more money in the long run.
As a result, they're stuck focusing primarily on people of lower income brackets. As you stated and as was stated in the interview, they don't have the ability to tie things up in months of court and extensive fees. They additionally don't have lobbying powers that allow them to talk to the right people to have their funding cut if they even think of collecting taxes that are owed.
Unless tax laws, special tax breaks, and things like that are drastically reversed, and funding is returned to the IRS in addition to giving them time to bring on new employees.. well.. get used to the new norm. Also get used to your new taxes for those of you who found yourselves in a new tax bracket this year, my roommate makes a couple dollars above minimum wage in the state and found himself in a 10% higher tax bracket than last year. If not for the stimulus tied to his taxes he would've owed around 800 dollars, and his company didn't decide to stop social security withholding because they knew it was a stupid idea that would just hit people in tax time. Get ready for next year's hike while you're at it unless things change.
I blame the regular voter, they keep voting for their local reps that say taxing companies is bad but taxing average people is ok. Both sides of the isle have this issue but keep on voting for or against culture war nonsense and ignoring the real issues in the country people.
Haha. Stimmy check. Mine went to having my sewer dug up because I had plumbing problems.
This has a Lewis Black feel to it, and I love it.
Real Talk Rudy is the coolest, I love the energy and the knowledge he gives!
This is why I'm subscribed.
Thank you. Please keep telling people the truth! It matters when people hear it from someone they like and respect, like you.
The Pharaos of old, with all the things that have changed, so much has not.
You said it,... you SAID it,... Brilliant video brother...
I loved this video but it got me thinking. You mentioned that you have 8 figures of magic inventory. What happens when your inventory (lets say the bulk of it... the real heavy hitters) appreciates to a value where the only people buying it are people like you who have the large positions of it... and they no longer have the appetite to accumulate more of it? What do you do in 20 years when nobody wants to buy a $150,000 box of Uzas saga... and you have $50m in inventory nobody can afford? Isn’t that a dangerous situation to be in? I just want to understand... what’s the tipping point when you have all the “unobtainium” and nobody can afford it anymore? Thanks again for the video, more like this... people need to know what’s really up. These politicians aren’t fighting for us, they are milking us while patting us on the head.
Damn good video. RIP, my side hustle...
Still one of my favorite Rudy Videos. It is going to happen exactly the way it is described. I can see it already when i talk to people about this subject...