Selling on Reverb

[BIGKAHUNA]

I've not sold on Reverb and am thinking about trying it out. So they say on there that you net about 92% of the total sale price + shipping. Is that accurate? I have total I need to net to make it worth it for me....just don't want to find out after the sale that the fees are more than expected.

 

[rsm]

If you create a listing, it will calculate their fees and maybe taxes IIRC. I have a few active listings I can check

 

[rsm]

If you create a listing, it will calculate their fees and maybe taxes IIRC. I have a few active listings I can check

It lists selling fee, processing fee; not taxes, so need to factor those into your price

 

[BIGKAHUNA]

It lists selling fee, processing fee; not taxes, so need to factor those into your price

Appreciate it - will create a listing and check it out.

 

[OldGtrGuy]

I actually just signed up again (to buy) after deleting Reverb. I had a ton of good transactions on there previously. Had a couple bad ones as a buyer and one serious loss as a seller but that was on USPS not Reverb. Like rsm said I think they have a calculator and yes 8% sounds about right.

They're going to ask you for your SSN and send you a 1099 or something, that's why I previously deleted mine. I refuse to pay taxes on something I've already paid taxes on. That's not necessarily on Reverb either as I'm sure they were forced.

 

[War_in_D]

Taxes will be paid by the buyer though, so unless you're worried about giving the buyer a break and lowering your price to account for the taxes the buyer is going to have to pay, it shouldn't figure in to the equation. But, it will give you an estimated "in your pocket" after the sale amount though when you're creating the listing, so that's helpful to determine where your asking price needs to be if you're trying to hit a number that's net to you.

 

[Brandonrz]

Taxes will be paid by the buyer though, so unless you're worried about giving the buyer a break and lowering your price to account for the taxes the buyer is going to have to pay, it shouldn't figure in to the equation. But, it will give you an estimated "in your pocket" after the sale amount though when you're creating the listing, so that's helpful to determine where your asking price needs to be if you're trying to hit a number that's net to you.

I could be wrong here, but that change in legislation that’s been forgiven the last two years the seller has to pay too… On any profit made. If you can’t show that you bought the amp or whatever through a legit shop, then you have to pay full tax on the sold item as if was your own.

 

[War_in_D]

I could be wrong here, but that change in legislation that’s been forgiven the last two years the seller has to pay too… On any profit made. If you can’t show that you bought the amp or whatever through a legit shop, then you have to pay full tax on the sold item as if was your own.

Depends on what tax we're talking about then, I guess. I was under the impression that the reference above was for "sales tax", which would be paid by the buyer. Federal Income tax is a whole other ball game. But yes, it's my understanding that you would only pay federal income tax on the "profit" made from the sale. If you don't have any documentation to show a loss, or the difference between what you paid for an item and what you sold it for, considered to be "profit" by the gubment.. then yeah, you might get stuck with paying income tax on the entire sale amount.

 

[acidvoodoo]

I sold a pedal recently and found out they made some shitty changes to how you get paid and I'm not to happy about it. Use to be they payout to paypal, nice and simple...now they force you to use some app called Plaid which requires you to tie your bank account to it. I still haven't set it up, I'm hoping I can just apply my payout funds to a future purchase.

 

[MusicIsLife]

The income tax concerns are pretty overblown. It has more to do with what you buy/sell during a given tax year, than whether you made $400 this year on a guitar you bought a decade ago, unless you also deducted that guitar as a capital expense when you purchased it back then. Most of us who are just buying and selling personal use gear have nothing to worry about, unless we're flipping a lot of gear for profit.

 

[Brandonrz]

The income tax concerns are pretty overblown. It has more to do with what you buy/sell during a given tax year, than whether you made $400 this year on a guitar you bought a decade ago, unless you also deducted that guitar as a capital expense when you purchased it back then. Most of us who are just buying and selling personal use gear have nothing to worry about, unless we're flipping a lot of gear for profit.

The problem is when we buy stuff friends and family or with Venmo or cash then sell on reverb.

 

[MusicIsLife]

The problem is when we buy stuff friends and family or with Venmo or cash then sell on reverb.

lol, why on earth would that matter?

 

[MusicIsLife]

I could be wrong here, but that change in legislation that’s been forgiven the last two years the seller has to pay too… On any profit made. If you can’t show that you bought the amp or whatever through a legit shop, then you have to pay full tax on the sold item as if was your own.

There's nothing new in terms of what we're required to report and pay taxes on. The ONLY thing that was going to change was the threshold at which intermediaries like Reverb/Paypal and others are required to generate a 1099-K. It was (and still is) $20K. It was slated to change to $600, but that was postponed. It'll mostly likely be lowered to $5K first, before being lowered any further.

 

[Brandonrz]

lol, why on earth would that matter?

A chunk of money not specifying what it’s for exactly counting as a receipt for a particular item, sounds like an auditing nightmare.

There's nothing new in terms of what we're required to report and pay taxes on. The ONLY thing that was going to change was the threshold at which intermediaries like Reverb/Paypal and others are required to generate a 1099-K. It was (and still is) $20K. It was slated to change to $600, but that was postponed. It'll mostly likely be lowered to $5K first, before being lowered any further.

The 600 dollar is postponed at this point. But if I sell a wizard and dig up a PayPal friends and family exchange that just says “thanks” then I’m going to get over that threshold quickly.

 

[RedB4Black]

The taxes from an income perspective.....Reverb would require a SSN to report proceeds, if you do not provide a SSN, then they will withhold tax at a statutory rate. If you do give them a SSN, they shouldn't withhold tax unless you ask them to. They will report proceeds on a 1099 and any tax you asked them to withhold. If you don't give them a SSN, you won't get a 1099, but they will withhold the tax on you anyway.

If you get a 1099, you must report the proceeds on your tax return, but you also report a cost basis. If the cost basis exceeds the proceeds, there is no tax. if the proceeds exceed the cost basis, then you pay tax on the excess. You really only need to prove a cost basis if you get audited and they ask for documentation to support the amount you report.

 

[RedB4Black]

A chunk of money not specifying what it’s for exactly counting as a receipt for a particular item, sounds like an auditing nightmare.



The 600 dollar is postponed at this point. But if I sell a wizard and dig up a PayPal friends and family exchange that just says “thanks” then I’m going to get over that threshold quickly.

If I send PP F&F, I print out the payment receipt and write what I bought on it as evidence of my purchase. It is essentially a contemporaneous log of the transaction and will satisfy the legal requirement for documentation with the IRS.

 

[RedB4Black]

...and also, it's not hard to create a bill of sale on anything....even if you bought it 10 years ago. lol

 

[Brandonrz]

If I send PP F&F, I print out the payment receipt and write what I bought on it as evidence of my purchase. It is essentially a contemporaneous log of the transaction and will satisfy the legal requirement for documentation with the IRS.

I definitely have not done that haha. I think figuring out what’s what would be a royal pain in the ass for me. That part is absolutely on me.

Doesn’t mean I can’t think that this and reverbs 8 percent selling fees are absolute bull shit though.

 

[Chronic Narnia]

There's nothing new in terms of what we're required to report and pay taxes on. The ONLY thing that was going to change was the threshold at which intermediaries like Reverb/Paypal and others are required to generate a 1099-K. It was (and still is) $20K. It was slated to change to $600, but that was postponed. It'll mostly likely be lowered to $5K first, before being lowered any further.

I was under the impression the $600 is back in play for this new tax year that would be due in 2025. Do you have any links on this?

 

[MusicIsLife]

I was under the impression the $600 is back in play for this new tax year that would be due in 2025. Do you have any links on this?

https://www.taxpayeradvocate.irs.gov/news/nta-blog/form-1099-k-part-two/2024/02/