Sellers want their cake & eat it too now..

  • Thread starter Thread starter napalmdeath
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mhenson42 said:
I find that on the FB groups people are like that. Expect their price plus shipping and fees. I generally don't buy much on there due to irrational expectations of sellers. It's much easier to spend 5% more and buy new. Hell, the way some of these people price stuff, it's actually more expensive than I can get new.
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“Due to irrational expectations of sellers”
LOVE IT MAN!
Once again, MHenson =ON POINT.
 
napalmdeath said:
Inquired about another amp, he wants me to ADD TAX?

"Would need to get paid either Venmo or friends and family unless you want to add tax and PP fees".
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And how are you supposed to know how much the seller may have made on the item from original purchase, or what the rest of their income is to determine how much tax? What a silly notion, I'll sell you this but you have to cover my income tax on it....
 
NeubyWanKaneuby said:
I've only been buying gear from either Sweetwater or GC, so I can return it if I don't like it.
I want to sell a guitar or 2, but I'm not psyched about shipping and the local market is "meh" at best.
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I assume you mean new. Used Guitar Center stuff is broken or mis represented 80% of the time. I bought many things that were just broken. Triaxis that has bounced around the guitar center used website like 20 times now. I bought it, it was broken, I told them, they didnt care and resold it.... Im sure thats happened every time. Same with a DSL and and SLX.


The used market has taken a DUMP. Last year things were selling for over normal prices and selling within hours or a day. Now top gear at reasonable prices just sit for months. Money is drying up and now add the 1099 thing on top.

I never used FF and I understand the hesitation but I think I am going to buy and sell to other members here and a couple other places if they have been around and feedback is good. Feedback is more important than ever now. I figure that if 1/20 deals goes bad, thats the same cost as paying paypal fees. But paypal will adjust and not allow FF and they will find a way to do fees and irs.
 
Need to figure out in your mind whose going to incur the costs of the transaction . You can always buy the amp new . You'll pay sales tax for the most part and you may pay shipping . In your mind you need to find the happy balance . The whole idea of buying things out of state and not paying sales tax was ludicrous if you think about it but I liked it . Thinks about the unfair economics if you owned a brick and mortar.
 
These days I push the protection onto the buyer if the buyer demands it. If the seller demands it then it’s on their dime. If both parties want it then you split the fee.

I always split shipping costs. The desire to sell is as much as the desire to buy.

I price it so that I can break even - I’m never out to make money on music gear. I’ve paid a lot for gear in the past and raised eyebrows with the seriousness of my prices but that’s what I’ve got in it and at most need to get out of it.

With the whole tax thing, it’s a benefit if you can prove you lost your ass on it not even as a business because then under line 8 of a 1040 you can write the losses off. If you’re moving enough product to be considered a business, then you can write off the loss as a schedule C.

If you think you’ll make a profit then go FF, or have proof of how much they go for to show what you sold it for is market value. Some of the stuff we buy and sell here is premium gear, market fluctuates accordingly which is in our favor. The downside is the IRS rarely gives a damn because in their eyes you’re guilty of something until proven innocent.
 
2 points to correct from above…

1. You were always required to pay tax even on an out of state purchase… it’s called a Use tax… problem is there was no real enforcement mechanism.

2. Hobby losses are not deductible anymore. Can’t even offset them against gains. Gross gains are taxable as ordinary income

Only way to deduct losses is to form a business… but then you’ll pay self employment taxes.

Prior to ‘18 you could itemize hobby losses but even then they were subject to 2% AGI floor
 
mhenson42 said:
2 points to correct from above…

1. You were always required to pay tax even on an out of state purchase… it’s called a Use tax… problem is there was no real enforcement mechanism.

2. Hobby losses are not deductible anymore. Can’t even offset them against gains. Gross gains are taxable as ordinary income

Only way to deduct losses is to form a business… but then you’ll pay self employment taxes.

Prior to ‘18 you could itemize hobby losses but even then they were subject to 2% AGI floor
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This has to change. You have to be able to offset gains with losses in the same year.
 
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Cap217 said:
This has to change. You have to be able to offset gains with losses in the same year.

I buy 3 guitars for $1000 each.

I sell those 3 guitars via paypal for $800, 1100, 700. I get a 1099 from paypal for $2600.

Now what?
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Assuming that’s your net after fees and shipping costs…

You’d owe tax on $100

Even if you sold locally for cash…You’d still owe tax on $100. Don’t claim it …then you are committing tax evasion.
 
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mhenson42 said:
Assuming that’s your net after fees and shipping costs…

You’d owe tax on $100

Even if you sold locally for cash…You’d still owe tax on $100. Don’t claim it …then you are committing tax evasion.
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I agree with what you are saying. What I got confused about was your statement:

2. Hobby losses are not deductible anymore. Can’t even offset them against gains. Gross gains are taxable as ordinary income
 
mhenson42 said:
Assuming that’s your net after fees and shipping costs…

You’d owe tax on $100

Even if you sold locally for cash…You’d still owe tax on $100. Don’t claim it …then you are committing tax evasion.
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So, who determines that, and how. Are you to itemize every transaction, or one lump sum on a 1099? Thats the part I don't get. I take a loss 99% of the time if I really want to move something.
 
mhenson42 said:
2 points to correct from above…

1. You were always required to pay tax even on an out of state purchase… it’s called a Use tax… problem is there was no real enforcement mechanism.

2. Hobby losses are not deductible anymore. Can’t even offset them against gains. Gross gains are taxable as ordinary income

Only way to deduct losses is to form a business… but then you’ll pay self employment taxes.

Prior to ‘18 you could itemize hobby losses but even then they were subject to 2% AGI
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You’re wrong on bullet 2. You cannot use a schedule C form for all losses including private sales with this new 1099 BS. There are financial limitations that also require you to include a tax ID to use a schedule C form. The majority here do not have a tax ID, and it states directly on the schedule C description on the IRS.GOV website to claim the losses instead under line 8 if you don’t meet the criteria for a schedule C form.

You can and should claim your losses if you itemize and sell that much product. Most of us here don’t move enough to warrant itemization beyond the standard deduction.
 
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Cap217 said:
I assume you mean new. Used Guitar Center stuff is broken or mis represented 80% of the time. I bought many things that were just broken. Triaxis that has bounced around the guitar center used website like 20 times now. I bought it, it was broken, I told them, they didnt care and resold it.... Im sure thats happened every time. Same with a DSL and and SLX.
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I've actually had good luck with their used stuff. I just picked up a PRS S2 594 Thinline and it's in the condition it was listed as.
I'm not 100% sure if I'm keeping it, but that's more or less because I'm not 100% sure I like the guitar itself.
 
glpg80 said:
You’re wrong on bullet 2. You cannot use a schedule C form for all losses including private sales with this new 1099 BS. There are financial limitations that also require you to include a tax ID to use a schedule C form. The majority here do not have a tax ID, and it states directly on the schedule C description on the IRS.GOV website to claim the losses instead under line 8 if you don’t meet the criteria for a schedule C form.

You can and should claim your losses if you itemize and sell that much product. Most of us here don’t move enough to warrant itemization beyond the standard deduction.
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Hobby losses… not deductible.

Business losses… deductible
 
mhenson42 said:
Hobby losses… not deductible.

Business losses… deductible
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Everything goes to the same line of deduction if you don’t have a tax ID regardless of what you call it. I do believe we agree and are saying the same thing - It all boils down to how much product you’re moving and whether you itemize your taxes. Itemize? Likely a business model. Standard deduction? Hobby - likely a waste of time.

I’m not a tax specialist so everyone should do their own research but this is what I get from the new law changes.
 
Smashedguitarist said:
Buyers have all the power. Just don't buy the thing if the price offends you.
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They're behavior is equally offensive. They, (not all, but many), come off with an increased sense of entitlement. Like you owe them, and must meet their demands to purchase from them. Who's doing who a favor these days? Apparently, it's become overly one-sided. Long gone are the days of mutual satisfaction, and reasonableness.

I take a bath on items at times on Reverb. But, if I'm unreasonable with an asking price, you just get 50 "watchers", waiting for you to come to your senses. In alot of cases, 50% of those "watchers" are waiting for you to give the item away, so take that with a grain of salt. Point being, I pay the fees to use their platform. It eats into your net sale, sure, but that's my problem, not the buyer's.
 
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