Are you and your mom both registered businesses, required by law to disclose the transaction to the IRS under either
'income in' or 'income out'?
No? Then it's stupid.
If i sell a $4000 amp on Ebay/Reverb do i gotta pay IRS ?
- Thread starter Samhain
- Start date
Are you and your mom both registered businesses, required by law to disclose the transaction to the IRS under either
'income in' or 'income out'?
No? Then it's stupid.
DanTravis62
Well-known member
Well Donnie, you just owned yourself.
Are YOU a business? When you sell a used guitar?
DERRRRR
DanTravis62
Well-known member
panhead
Well-known member
Well then youre implying the govt is crooked. Oh Say it aint so donnieb
DanTravis62
Well-known member
What you guys don't seem to understand
Is that this used gear tax shit creates a FUCKING TERRIFYING PRECEDENT.
It literally sets the precedent that no sale of any good can be made privately.
And if you don't understand WHY that's terrifying, than you're beyond my help.
Is that this used gear tax shit creates a FUCKING TERRIFYING PRECEDENT.
It literally sets the precedent that no sale of any good can be made privately.
And if you don't understand WHY that's terrifying, than you're beyond my help.
Racerxrated
Well-known member
Again, if you don’t use said vessels (eBay, Reverb, PayPal non gift) you have the complete FREEDOM to sell to whomever you wish, on forums/Craigslist/FB or word of mouth. If you are using a business that makes a profit, that they have to report to the government then you will be subject to taxes unfortunately. We were lucky for over 20 years in not having to deal with that on the net.
What you are suggesting is only possible by using these businesses to sell our gear. Beyond that, the government would have to audit everyone’s personal property, year in/year out, and at the same time our bank accounts to determine if we sold any property at all that they could try to tax us with.
Doubtful to say the least.
DanTravis62
Well-known member
That's the point; reverb eBay etc are not selling your item. You didn't sell it to them, to resell. It's a consignment.
It's still a private sale, and taxing it as if it wasn't is a dangerous precedent.
Only if I utilize a 3rd party business to make the deal.
If you and I do it in your driveway we're good.
We could even use email, Facebook, Twitter, or a cell-phone, and we're still good.
Just avoid THE MAN.
Why you saying I don't know what I'm talking about when there's more than one person
telling you to stop staring at the damn tree, and consider the whole forest.
For cripes sake!
Did you read the terms before signing up to Reverb - a privately run sales broker?
No?
Who's stupid now.
DanTravis62
Well-known member
Did you read the terms before signing up to Reverb - a privately run sales broker?
No?
Who's stupid now.
A sales broker selling USED PRIVATELY OWNED GOODS.
That's fine for businesses using reverb to make sales, but providing a search engine doesn't make you a "broker" for private sales.
You don't magically become a corporation because you use reverb to list a privately owned used item.
Say you go bankrupt, galavanting in reverb sales; are you afforded the same protections as a fucking corporation? Protecting your private "business" from your "corporate" business? Because you listed your used, privately owned good, on reverb?
Seriously, that's idiotic.
Mailman1971
Moderator
Go USPS money orders. Takes little longer. But backed up 100 percent. It’s cash transfer. With zero involvement of the government.
Making mountains out of molehills.
Re: used gear and Reverb
The sales broker YOU contracted could give two fucks whether what you are selling is used,
brand new, or hand carved by albino virgins on a mountaintop in Nepal.
To them it's simply a line item on their sales and expense account. So let's stop focusing on that.
Another easier way is find a common bank and have them make out a Bank check.
Most of the bigger branches are everywhere these days so it's pretty easy.
Racerxrated
Well-known member
I see your point. But, I wonder how my friends shop(now closed thanks to Covid) dealt with consignment sales. Did he report them or not? Thing about Reverb/eBay is, all the sales are out there for everyone to see….vs a small shop and consignment sales. Easier to ‘under the table’ a consignment sale than an item the store ordered…I get the comparison because it makes sense.
DanTravis62
Well-known member
That's right donkey, you contracted them to list it on their database - you didn't SELL THE ITEM TO THEM. They are not SELLING THE ITEM. You are, one private seller to another.
That gives the government a right to the fees you pay reverb, and the buyer pays reverb, but not the privately owned used item you are privately selling to another private party.
But that doesn't help with how much you paid for something if you don't have the receipts/can't remember. That's where this all starts correct? Capital gains or profit but to figure out profit you first need to know how much you paid for something.
How about inflation? If you paid $1000 for something then sell it 30 years later for $1500 is it still counted as profit?
Not if you use Reverb. It's that simple.
No need to get pissed and start with the insults.
You wanna take it there I'm ready but I'd rather not.
This has NOTHING to do with politics unless you choose to go there.
RedB4Black
Well-known member
Last time I checked the USPS was an agency of the federal government. Yes... probably the easiest route other than just mailing cash or check...but Money orders have limits and there is government reporting if you go over $3000 in money orders in a single day. I've never bought a USPS money order, but I would assume they get your information as the purchaser.
Anytime there's a paper transaction or it goes through your bank account (depositing cash after you cashed a USPS) there is still potential for discovery in an audit. Not saying that an auditor would necessarily be that aggressive in ferreting out unreported revenue, but you'd never know.
