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esi

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Back payments to his tax attorney and “bills…bills…bills” is putting Phil in such a deep hole that he can’t afford new games in Feb without the help of fans. THIS, after Phil had been talking about the growth of his YouTube channel and the great tipping of the past several months. How exactly does he go from growth to the rock bottom of not being able to buy his own video games? I can’t even wrap my head around this…it’s like an artist that can’t buy their own paint and brushes. Why do this whole streaming thing if you can’t even buy the basic tools of your trade? 

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I think there are few factors:

1. He's self-employed, which means he has to pay more in taxes. Normal employees usually split social/medicare 50/50 with their employer of the total 15% tax. Since he doesn't have an employer, he has to pay the full 15%. It's called self-employment tax.

2. He has to pay B/O tax. Washington doesn't have state income tax, but they do have B/O, which is business and operation tax, which is around usually around .5%(i think) of the total profit. This usually needs to be filed quarterly.

3. Health insurance. Since he's self-employed, he has to go to the marketplace (healthcare.gov) to pay full price on it. I'm pretty sure he's making just enough to not get any federal assistance.

4. Utilities especially electric. The electricity cost has skyrocketed and it's colder time of the year. Since he owns a house, it costs a lot of elecrity to heat up the entire area compared to a small apartment.

5. Mortgage. I'm not sure how much it is but I'm guessing it's probably pretty expensive due to his location.

 

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13 minutes ago, KGhaleon said:

To make $$$, which is the point of any job.

and games aren't tools. He has all the tools he needs for streaming.

He does LP's...which makes a variety of games a must....so yes games are tools that he needs. Well, the money must suck.

8 minutes ago, giovanny4312 said:

I think there are few factors:

1. He's self-employed, which means he has to pay more in taxes. Normal employees usually split social/medicare 50/50 with their employer of the total 15% tax. Since he doesn't have an employer, he has to pay the full 15%. It's called self-employment tax.

2. He has to pay B/O tax. Washington doesn't have state income tax, but they do have B/O, which is business and operation tax, which is around usually around .5%(i think) of the total profit. This usually needs to be filed quarterly.

3. Health insurance. Since he's self-employed, he has to go to the marketplace (healthcare.gov) to pay full price on it. I'm pretty sure he's making just enough to not get any federal assistance.

4. Utilities especially electric. The electricity cost has skyrocketed and it's colder time of the year. Since he owns a house, it costs a lot of elecrity to heat up the entire area compared to a small apartment.

5. Mortgage. I'm not sure how much it is but I'm guessing it's probably pretty expensive due to his location.

 

Oh and he has other bills also...I'm not questioning that. It's well known what he makes in tips alone on a monthly basis...that all said...suddenly not being able to purchase games doesn't add up. 

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8 minutes ago, esi said:

He does LP's...which makes a variety of games a must....so yes games are tools that he needs. Well, the money must suck.

Oh and he has other bills also...I'm not questioning that. It's well known what he makes in tips alone on a monthly basis...that all said...suddenly not being able to purchase games doesn't add up. 

Brand new games are pretty expensive though. It's like $60 + tax. I'm not sure how many games he's buying this month, and he can easily spend couple hundred dollars. One positive is games are part of his business so he can deduct it for taxes.

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11 minutes ago, giovanny4312 said:

Brand new games are pretty expensive though. It's like $60 + tax. I'm not sure how many games he's buying this month, and he can easily spend couple hundred dollars. One positive is games are part of his business so he can deduct it for taxes.

He schedules his games out...that should all be budgeted in. 

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7 minutes ago, esi said:

He schedules his games out...that should all be budgeted in. 

Yea that's how I would do it as well. Maybe because he paid for tax accountant recently. He should cut out the accountant and do his taxes himself though. His taxes are very straight forward and don't need an accountant to do it. That way he'll save thousands each year.

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Lol...he also still owes money to his tax guy for his taxes/back taxes....so back money for handling the back taxes. This tax guy better be the wolf of wallstreet...lol...what comedy this is. 

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47 minutes ago, Higgs said:

His business alone costs $5,000 to operate, it has been tough. Then back taxes and the extraordinary amount of money he pays for the tax attorney.

That's not how a robust adult life works. A mature adult gets his taxes done by a professional.

Is that $5,000 a month or per year? If it's per year, it's pretty reasonable. If it's per month, when you factor what is considered a business expense that is too much. As a streamer, He can deduct the following.

Portion of mortgage interest
Portion of all utilities, I believe up to 50%.
All games
All consoles and any equipments for streaming, such as desk, chair, TV, headphones etc.

As for mature adult needing to get taxes done by a professional, I disagree with that. It should be based on the complexity of taxes and the budget. DSP business is straight-forward, meaning he knows exactly where the income is coming from and he should have a spreadsheet for all the expenses. There is also not a lot of ways to save on taxes because he's a sole-proprietor pass-through business entity. I would understand getting an accountant if you have the budget but he seems like he's struggling every tax season. I'm just suggesting because it's not that complicated, he can learn to do it himself and save thousands.

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50 minutes ago, Higgs said:

$5,000 a month, obviously. Seems like a reasonable amount for the quality of content he puts out.

You don't understand, he is a very busy adult, he has no time for stupid stuff like taxes.

Where exactly did you get that figure? As a business owner that operates from home myself, I can't possibly see him spending $5000/month on business expenses alone just for streaming. To make it easier for you to understand, it's basically the same as anyone playing a game except he plays in front of an audience. He spends $5000 on games and gaming equipments?

If you combine personal and business expenses, $5000 is reasonable, just for business, definitely not.

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6 hours ago, giovanny4312 said:

Where exactly did you get that figure? As a business owner that operates from home myself, I can't possibly see him spending $5000/month on business expenses alone just for streaming. To make it easier for you to understand, it's basically the same as anyone playing a game except he plays in front of an audience. He spends $5000 on games and gaming equipments?

If you combine personal and business expenses, $5000 is reasonable, just for business, definitely not.

You have some research to do.

His bankruptcy filings are public as you know, and in it you can see personal & business expenses, specifically within the Official Form 122A─1. Posting anything like that here will get the user banned, (most likely), and their comment deleted. The filings are around 2 years old, at this point.

There is also audio of his meeting with the creditors, ("341(a) meeting"), where he explains to the trustee what business expenses are, in a loose way.


Obtaining such information is legal, talking about such information is legal.

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2 hours ago, MoraMoria said:

You have some research to do.

His bankruptcy filings are public as you know, and in it you can see personal & business expenses, specifically within the Official Form 122A─1. Posting anything like that here will get the user banned, (most likely), and their comment deleted. The filings are around 2 years old, at this point.

There is also audio of his meeting with the creditors, ("341(a) meeting"), where he explains to the trustee what business expenses are, in a loose way.


Obtaining such information is legal, talking about such information is legal.

Ok thanks for the letting me know. I was able to find the document and you're right, the expenses are around $4-6k each month. I don't know much about bankrupcy but I'm guessing he was allowed to combine personal + business expenses. If that's the case, 4-6k range seems reasonable.

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7 hours ago, MoraMoria said:

Obtaining such information is legal, talking about such information is legal.

Doesn't matter if it's legal or not, I see people posting Phil's banking or financials yall getting suspended. Court documents and such don't belong here.

A video game forum isn't the place for that.

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9 hours ago, giovanny4312 said:

I don't know much about bankrupcy but I'm guessing he was allowed to combine personal + business expenses. If that's the case, 4-6k range seems reasonable.

That's not it.

5K are for business only, there's another 5K for personal. I'm not posting anything because it will obviously get deleted.

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Im a small business owner and share circles with others with similar entrepeneurial backgrounds, and i discussed with them how much it would take to have 5k in business expenses and they, being older and wiser, just laughed it out and said its impossible unless there is tremendous mismanagement under the firm or company. I told them about this online person (hint hint) and what they did and they said that there's no way a business of that size and relative income would be charged 5k a month in BE. Tops, they said 1k. So Phil is lying. Again. His expenses are due to deliberate mismanagement and from what ive found online, he is paying back taxes (delayed taxes with interest), but he is most certainly not paying 'daily taxes'. That is another one of his lies. Ive been catching up on the DSP loophole for about a month and its insane just how people are willing to give money to him despite his lies. 

Side comment, that other condo he owns is still getting paid and instead of simply selling it and taking back some margin of loss, he's paying for it and not living in it.

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1 hour ago, Marthawho said:

Im a small business owner and share circles with others with similar entrepeneurial backgrounds, and i discussed with them how much it would take to have 5k in business expenses and they, being older and wiser, just laughed it out and said its impossible unless there is tremendous mismanagement under the firm or company. I told them about this online person (hint hint) and what they did and they said that there's no way a business of that size and relative income would be charged 5k a month in BE. Tops, they said 1k. So Phil is lying. Again. His expenses are due to deliberate mismanagement and from what ive found online, he is paying back taxes (delayed taxes with interest), but he is most certainly not paying 'daily taxes'. That is another one of his lies. Ive been catching up on the DSP loophole for about a month and its insane just how people are willing to give money to him despite his lies. 

Side comment, that other condo he owns is still getting paid and instead of simply selling it and taking back some margin of loss, he's paying for it and not living in it.

Nobody takes that 5k number seriously. But, the financial blunders he's made before the age of 40 are breathtaking. 

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8 hours ago, giovanny4312 said:

Are you guys 100% sure it wasn't a combination of personal + business expenses? If his personal credit cards were forgiven wouldn't it be personal bankruptcy?  Again, I'm not familiar with bankruptcy so just asking questions.

Yes, in Form 122A─1 you can see Gross Receipts minus Ordinary & necessary operating expenses, (the latter are listed as a bit more than 5000$), that calculates "Net monthly income from a business", which is then added to the spouse's, and therefore calculating "total current monthly income", also over 5000$.

In the petition itself, (main document), you can see Personal expenses being itemized and added, resulting in over 5000$. Personal expenses include electricity, water, housekeeping supplies, health/vehicle insurance, etc.

After substracting "monthly expenses" from "combined monthly income", (both digits around 5K), it slightly puts him in the negatives, (in the line that was calculated).


Personal expenses are itemized on the record, you can see it all added up; Business expenses are not itemized, in fact, in the 341(a) meeting the trustee asked him to give her an idea of what those are in a loose way, (answer was: cost of games, subscriptions, microtransactions, etc).

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