IRS & 2023 Taxes

  • Thread starter Thread starter glpg80
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VonBonfire said:
So you file and show a loss. They aren't going to audit every 1099 recipient, It's not going to "trigger an audit" just because you have a 1099 from reverb. People often go years not filing 1099's before they are caught. There is no manpower to audit them all. At worst, you don't file, get caught and have to pay the taxes plus a penalty. I seriously doubt they are going to seek criminal charges for a guy who shows a few thousand bucks profit on his ebay/reverb but has receipts showing a loss when he is audited.
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No manpower?
This is why Biden tried to hire 50 thousand irs agents last year. I don’t recall the exact number but it was a metric shit ton of them.
 
The IRS isn't going after any of you idiots who earned a few hundred dollars.

Think of what it takes to pay someone who investigate you and what they stand to gain from your new taxes.
 
ners said:
The IRS isn't going after any of you idiots who earned a few hundred dollars.

Think of what it takes to pay someone who investigate you and what they stand to gain from your new taxes.
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Idiots? If that’s what you think about the irs I have to respectfully disagree. All those new agents will make the government their salary plus a whole lot more. Imo
 
JackBootedThug said:
Idiots? If that’s what you think about the irs I have to respectfully disagree. All those new agents will make the government their salary plus a whole lot more. Imo
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The "idiots" comment was referring to the people on this forum thing they'll be in trouble over a few hundred dollars worth of profits.

My entire point was that those new agents will make more than their salary by going after bigger fish and not an individual who bought & sold a handful of gear.
 
ners said:
The "idiots" comment was referring to the people on this forum thing they'll be in trouble over a few hundred dollars worth of profits.

My entire point was that those new agents will make more than their salary by going after bigger fish and not an individual who bought & sold a handful of gear.
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They specifically go after low income people regularly, so it’s not a giant stretch to think they’ll go after the guy who made a few dollars on some gear they had laying around. The less money you have to fight it, the more they see it as an easy way to steal your money.
 
Chubbs said:
They specifically go after low income people regularly, so it’s not a giant stretch to think they’ll go after the guy who made a few dollars on some gear they had laying around. The less money you have to fight it, the more they see it as an easy way to steal your money.
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Are they going after low income people with larger tax bills?

I'm sure the occasional rando gets audited but for the most part they're going to focus on the areas with the largest impact and not guitar nerds who made a few bucks.
 
There are two things in life that are unavoidable: death and taxes. Make sure you file. The trouble you get into if you don’t isn’t worth trying to shortchange the government, sadly.
 
I purposely
rsm said:
I sold around $10K worth of gear this year, and purchased even more - which the IRS doesn't track or care about, or take into account to offset what we sell.

I sell gear to fund new gear, doubtful anyone in the IRS considered that.
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if you pay 1200 for a guitar and sell the guitar for 1300, you pay tax on the $100 profit, not the $1300.
 
scottosan said:
I purposely

if you pay 1200 for a guitar and sell the guitar for 1300, you pay tax on the $100 profit, not the $1300.
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some of what I sold was old gear, no receipts or proof of what I paid for it. Didn't have a reason to keep receipts after I decided not to return the items.
 
Hopefully this disturbance and shock's energy will lead to discussion of the UNITED STATES corporation (de facto corporate democracy) and how it is different than the united states of America, or de jure constitutional republic.

Tired of being plundered and exploited by a foreign company chartered in Puerto Rico?
 
ners said:
The "idiots" comment was referring to the people on this forum thing they'll be in trouble over a few hundred dollars worth of profits.

My entire point was that those new agents will make more than their salary by going after bigger fish and not an individual who bought & sold a handful of gear.
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Gotcha…👍
 
Since Reverb will be sending my 1099, along with eBay and a few others, I plan to itemize every guitar related purchase I've ever had this year - including strings, picks, cables, tools, glue, files, solder, etc plus the basis cost of every piece of gear I have. I'm deep into the negatives when it comes to gear collecting, as fun as it is. I look forward to getting an even larger tax refund than usual.

Also worth mentioning that Reverb/Etsy/Ebay and a few others have been trying to fight this new tax law. They know it's going to negatively effect sellers on their platforms and therefore their cut. I have my own feelings about the selling platforms but at least they are trying to do something about it, which is the reason the law was temporarily "lifted" last year (this was originally supposed to go into effect for the 2022 year).

Edit: Realistically I don't think most people will be affected, even if you sell more than $600, but I do think it's made abundantly clear that lowering it from $20k to $600 means they will be much more willing to target people making $5,000-10,000 in profits.
 
fortunately, most people have been paying me with PP F&F. I have receipts for all of my pickup parts electronically so, to show that wasn’t straight profit should be easy.
 
rsm said:
some of what I sold was old gear, no receipts or proof of what I paid for it. Didn't have a reason to keep receipts after I decided not to return the items.
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No text messages, emails, forum DM, anything showing what you paid?
 
TotallyRadGuitars said:
Since Reverb will be sending my 1099, along with eBay and a few others, I plan to itemize every guitar related purchase I've ever had this year - including strings, picks, cables, tools, glue, files, solder, etc plus the basis cost of every piece of gear I have. I'm deep into the negatives when it comes to gear collecting, as fun as it is. I look forward to getting an even larger tax refund than usual.

Also worth mentioning that Reverb/Etsy/Ebay and a few others have been trying to fight this new tax law. They know it's going to negatively effect sellers on their platforms and therefore their cut. I have my own feelings about the selling platforms but at least they are trying to do something about it, which is the reason the law was temporarily "lifted" last year (this was originally supposed to go into effect for the 2022 year).

Edit: Realistically I don't think most people will be affected, even if you sell more than $600, but I do think it's made abundantly clear that lowering it from $20k to $600 means they will be much more willing to target people making $5,000-10,000 in profits.
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It makes me think how many people are going to be unexpectedly getting a 1099K from these platforms. I have a feeling a lot of those people are going to be like WTF and stop selling through said platforms. Hence the reason whey eBay, Reverb, Etsy want to fight the law. Like you said, they know it'll eat into their profits from seller fees.
 
I’m actually convinced only 1 thing is guaranteed in life-> death. Clearly lots of folks don’t pay taxes. I say “clearly”… we don’t know. But I would suspect a lot of folks don’t.
 
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