Has anyone dealt with cross-border gaming income? I'm technically a US citizen but I live in Canada most of the year, and I have income from viewers/subscribers in multiple countries. The platforms pay me in USD but I'm not sure how to handle this for tax purposes.

This is really helpful info everyone! I'm in a similar boat - made about $8,000 from streaming and selling CS:GO skins last year but never reported it. Reading through these comments, it sounds like I need to: 1. File amended returns for last year 2. Start tracking everything going forward 3. Keep receipts for any gaming purchases I use during streams Quick question though - what about crypto payments? Some of my viewers tip me in Bitcoin or other cryptocurrencies. Do I need to report those at the value when I received them, or when I convert to USD? And if I never convert them and just hold the crypto, is that still taxable income? Also seeing mixed info about whether casual tournament winnings need to be reported. I won like $500 in a local tournament but it wasn't a regular thing for me. Is there a threshold for this kind of stuff? Thanks for all the detailed responses - this community is way more helpful than trying to figure this out alone!

Has anyone else heard about the next change to $5,000 for 2024? My accountant just mentioned this and I'm already worried about the extra paperwork. I used to just do a simple Schedule E but now I'm wondering if I need to track every little expense more carefully.

This is such a helpful thread! I've been dealing with similar confusion about my Airbnb income. For what it's worth, I think the inconsistency you experienced between 2021 and 2022 is pretty common - many hosts are reporting similar situations where they got 1099-Ks one year but not the next, even with similar income levels. One thing I learned from my tax preparer is that some platforms were being overly cautious in 2021, issuing 1099-Ks at lower thresholds because they were anticipating the rule changes. Then when the $600 threshold got delayed, they reverted back to the strict $20k AND 200 transactions rule for 2022. The key takeaway that everyone here has emphasized is spot on - always report all your rental income regardless of whether you get a 1099-K. I use a simple spreadsheet to track all my bookings and payments throughout the year, which makes tax time much easier whether I get the form or not.

My tax preparer told me to just put a memo on every single Venmo/Cash App payment clearly stating what it's for ("My half of May rent" or "Reimbursing you for groceries"). She said if we ever get audited, those descriptions would help prove these weren't business transactions. Also, we started using the "friends and family" option whenever possible on PayPal since those supposedly have different reporting requirements than goods and services payments.

The confusion around 1099-K reporting is totally understandable! The key thing to remember is that receiving a 1099-K doesn't automatically mean you owe taxes on that money - it's just a report of transactions. The IRS still needs to determine what's actually taxable income versus personal transfers. For your situation with your partner, those rent and bill splitting transfers aren't considered income even if they exceed the reporting threshold. You're just reimbursing each other for shared expenses, not earning money. However, I'd definitely recommend keeping good records - use descriptive memos in your payment apps like "half of January rent" or "utilities split" so you have documentation if needed. One thing to consider: if one of you consistently receives the money and pays the bills (like you collecting rent from your partner and paying the landlord), that person might be more likely to receive a 1099-K. But again, as long as you can show these were reimbursements for shared expenses, there shouldn't be any tax liability. The rules have been changing and getting delayed, so staying informed about current requirements is important. But for typical roommate/partner expense sharing, you shouldn't stress too much about owing taxes on money that's just moving around to cover your regular living costs.

Why not just use an LLC taxed as an S-corp for the consulting? That's what I do for my dual streams - keeps everything cleaner and you won't risk having auditors question why two totally different businesses are mixed together.

I'd actually recommend sticking with your existing PSC structure for both income streams. The IRS considers both film production and financial consulting as qualifying personal services, so there's no compliance issue with running them through the same entity. The key advantage of keeping everything in one PSC is simplicity - you'll have one set of books, one tax return, and streamlined accounting. Just make sure to track the income sources separately for your own records and maintain proper documentation showing both activities are legitimate personal services. One practical tip: given that large upfront consulting payment, consider discussing with a tax professional about timing your salary distributions to optimize your overall tax situation. You might want to spread some of that $135K across tax years depending on your other income and tax brackets.

Has anyone successfully appealed a Section 179 recapture with the IRS? I accidentally dropped to 47% business use on my work truck last year (got a company car mid-year but kept the truck), and now facing a big tax hit. My accountant says I should just pay it, but wondering if anyone's had luck with appealing these situations?

Great question about Section 179 and vehicle usage! I went through something similar with my construction business vehicles last year. Just to add to what others have mentioned - one strategy that worked for me was being very strategic about which vehicle I used for different types of trips. When I got my second work truck, I made sure to use my original truck for all client visits, job site inspections, and supply runs to keep the business percentage high, while using the new truck for the heavier hauling work. I also found it helpful to set up a simple system where I logged the odometer reading and purpose every time I got in either vehicle. It only takes a few seconds but gives you bulletproof documentation if the IRS ever questions your business use percentages. One thing to watch out for - the recapture calculation can be pretty harsh if you fall below 50%. In my case, dropping from 70% to 45% business use would have meant recapturing about 60% of my original Section 179 deduction as ordinary income. Definitely worth the effort to stay above that threshold!