How do I enter information for DraftKings Reignmakers when my taxes? There are columns for purchases and sales of cards they'll provide in a spreadsheet but no 1099.

[Guchman]

I'm not sure if it matters but there are also columns for the fees and net proceeds based on the sale price. I'm not sure if I'm also going to need the cost of purchasing or estimated value of packs I've purchased/received. How would I find that information and how should I enter it into TurboTax?

[tagteam]

What would you consider this activity to be in your mind? 

A business? An investment? A hobby?

[Guchman]

@tagteam That's another question I need answered. I would say hobby but I'm not entirely sure in this instance. That's why I need someone that's familiar with Reignmakers. It's a very specific thing and someone that doesn't know what I'm referring to won't be able to answer my questions effectively because it's a very unique thing and me explaining it and trying to make comparisons so it's understandable to an outside won't work particularly well.

[VolvoGirl]

Are you sure they won't be sending you a 1099?  It won't come  until late January or Feb.  

[tagteam]

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@Guchman wrote:

@tagteam That's another question I need answered. I would say hobby but I'm not entirely sure in this instance.....

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The factors listed at the IRS web site at the link below might help you with that determination.

https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

[Guchman]

@VolvoGirl Yes. They've very specifically said they'll send one for one thing but it doesn't include Reignmakers.

[RobertB4444]

If you are playing Reignmakers to make money then it's a business.  If you're playing for fun it's a hobby (even if part of the fun is making the money).

If you decide to treat it as a business then you need to track all of the money that you have gone out of pocket for in the year - every penny you put into the game.  You also need to track all of the money that you made.  Then you would enter the totals on schedule C in order to see whether you made or lost money over the course of the year.  

If you decided to treat it as a hobby then you would report any income that you make selling the cards and whatnot but you do not get to deduct any expenses.  

@Guchman 

[Guchman]

@RobertB4444 Thanks. That helps a lot. In terms of tracking if I decide to treat it as a business, do you know about the spreadsheets Draftkings is able to send? Do those have all the information necessary or is there something separate I need to be doing? Also, on a potentially unrelated but separate note if I decide to have someone from TurboTax do my taxes for me do I need to make an appointment? How does that work?

[DaveF1006]

We have no knowledge about the spreadsheets that DraftKings sends but these should be detailed enough to determine the income and expenses that need to be reported. The decision to treat this as a business lies on the fact if you intend to make money, if the volumes of your trades are high and if you do this fulltime. If you do it strictly as enjoyment or treat like a game, then I would report it as hobby income. Sometimes the fine line between a business is blurred at best.

To request a live expert to do your taxes, log into your intuit account. In your Turbo Tax Online return. The best way to request an expert to to your taxes is to do the following.

1. Log into your Turbo Tax Account online.
2. Once you are working on your return, select the Live Tax Advice button on the top right
3. Select upgrade for this option when it asks you to do this.
4. After you perform this step, there will be a new screen that will appear.
5. In the top right portion of your screen, you should now see a box in all red letters that says Do My Taxes For Me
6. Once you do this, you should be immediately connected to a live expert.

The steps outlined above are correct if 1) you are preparing your return using Turbo Tax online 2) if you have already started your return. If you either have not started a Turbo Tax Online return and are beginning initial preparation, you will be asked numerous times if you wish for an expert to prepare your taxes. In fact, you will be asked so many times that it can become annoying after awhile.  

If you are using Turbo Tax Desktop, live help is not available. You will need to switch to a online account to take advantage of this service.

@Guchman