1099-K on Reverb and reporting it.

[frontline205]

Reposted from the off topic forum

Hey guys I know I'm not the only one here who does their own taxes, or sales on reverb (a lot). I'm finishing up filing and I sold a whopping 20k on reverb. However I sold at a loss. Tax slayer wanted me to do a schedule C. That actually brought my tax bill down a bit. Now can I use a schedule C, or because I'm not an official business I'd get in trouble. Probably a bit of an advance question on Rig-talk but figure I'd give it a shot LOL

Also yes I know I’m filing super last minute just figure I’d ask here to get ideas before I press send.

 

[NowYou'rePlayingWithPower]

Schedule 1/D see my response in your OTC thread.
Do not use a schedule C if you are not a business.

 

[RedB4Black]

It’s less because it’s deducting losses as if you were a business. You are not. So don’t. You aren’t paying and more taxes on the sales… just don’t get to deduct losses.

 

[glpg80]

If you’re not a business then you can’t use a schedule C

I’m not a tax advisor but there is a hobby declaration you can see if you qualify for. It will let you write off things like reverb charges, taxes, shipping costs, etc. Be sure to have your basis - your proof of what you purchased your gear for - to show that it’s a loss which you can enter as well. I forget the name of the form and you also need to see if you qualify at 20k.

Again not a tax advisor but that’s something you can look into.

 

[japetus]

Whole lotta guitar and amp sellers running secret LLC's getting nervous, hate to see it!

 

[RedB4Black]

If you’re not a business then you can’t use a schedule C

I’m not a tax advisor but there is a hobby declaration you can see if you qualify for. It will let you write off things like reverb charges, taxes, shipping costs, etc. Be sure to have your basis - your proof of what you purchased your gear for - to show that it’s a loss which you can enter as well. I forget the name of the form and you also need to see if you qualify at 20k.

Again not a tax advisor but that’s something you can look into.

If you aren’t a business, then it’s a hobby.

Costs to sell are included in your cost basis. So if you paid $200 for something. Sold on reverb for $250, paid reverb fees of $25, $10 for a box and $15 to ship. You are breaking even… no tax due

 

[frontline205]

Whole lotta guitar and amp sellers running secret LLC's getting nervous, hate to see it!

Good thing I didnt press send on that 1040 LOL

 

[VonBonfire]

People buying/selling more than $600 worth of gear should be keeping receipts of everything now even if it's just random tossing them in a shoebox.

 

[Tonelover]

Best advice I can give is don't ask for tax advice on internet forums.

 

[frontline205]

Best advice I can give is don't ask for tax advice on internet forums.

I aint afraid to do a little time!!!, but nah. Your right. Was just getting ideas

 

[RedB4Black]

I aint afraid to do a little time!!!, but nah. Your right. Was just getting ideas

Don't be surprised if some of us are licensed by the state and actually know what we are talking about! lol