I walked into Gamestop to trade in the two used DS games, and the clerk asked me if I wanted cash or a store credit. When I replied “cash” the clerk asked for my driver’s license. When I asked why, he told me that they are technically a pawn shop, and when giving cash for a trade-in they must report the recipient’s driver’s license number to the Department of Homeland Security and the Internal Revenue Service.
So, I changed my selection to “store credit,” whereupon the clerk promptly asked me for my name and telephone number. When I asked why . . . you guessed it . . . he replied that, as a pawn shop, he had to report that information to the Department of Homeland Security and the Internal Revenue Service. He said that they needed to track these things.
Outraged, I replied that they do NOT need to track these things and that they already track way too many things. I told him that it was nobody’s business but his and mine that I was selling used video games.
I reminded him that I cannot even buy cold medicine at the drug store without reporting the transaction to the government.
via History News Network.
I don’t know tax law: is the trade-in value of something a form of income?
I wouldn’t think so, unless the trade in increased in value, and then you’d have capital gains over the purchase price.