Did anyone notice this from Reverb?

psychodave said:
I just shut down my reverb sale based on this new crap. F them.
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Not a problem unless you turn a profit. You’ll just be taxed at whatever income bracket you’re in unless the sale amount pushes you over an income bracket. It will hit those of us already in upper tax brackets more than others. It definitely isn’t scaled fairly for used items.
 
This sucks , but the irs doesn’t have time for people selling used guitar gear , it’s a fear tactic in my eyes to report everything. The irs doesn’t give a shit about a used amp or guitar sold , unless your pulling over 20k net profit .
 
espquade said:
So I decided to list a few things on Reverb this week and this popped up on their site ( US tax reporting rules have changed for 2022. We'll need some info from you if you sell $600 or more this year) ... Hmm , Interesting as I thought the amount was originally 20,000 in sales and you would receive a 1099 and I guess this is the new norm.

I pay my taxes and get how it works but my fair share just got to be more than my fair share .

I understand this for a business that sells on there but for the guy who is just buying and selling used gear just to try new things and hardly ever making a real profit if any as I usually take a loss or if I am lucky just break even it seems like overreach and is quite invasive not to mention now I have to prove at the end of the year that I didn't make a profit ... WTF I feel this is total bullshit and I guess I may be done altogether selling with Reverb/Ebay , but what's next are they going to monitor PayPal etc?

If your just buying gear and flipping for feeding your gas addiction and the used gear has already been taxed when it was originally new I see no reason why this is a requirement other than double dipping and taxing us over and over again which is total Bullshit! Yes I realize this is only if you make a profit over 600.00 but the overreach and the fact that it's now something I have to prove is unacceptable! I guess selling to the local Guitar center just got more appealing :poop:
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LET'S GO BRANDON!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
 
glpg80 said:
Not a problem unless you turn a profit. You’ll just be taxed at whatever income bracket you’re in unless the sale amount pushes you over an income bracket. It will hit those of us already in upper tax brackets more than others. It definitely isn’t scaled fairly for used items.
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I was selling something for like 3-4x what I paid for it. Had multiple 3x offers, but was holding out.
 
Yeah this sucks big time. I tried to unload all the stuff I wasn't using last year knowing this was coming. What's even worst is say you inherited some gear and wanted to sell it online, your screwed! Guitar Center used gear is going to get a lot more plentiful.
 
I was telling my wife about this last night. We were commenting on how this would affect the used goods market (not just gear). Or those who sell a few crafts/niche hobby items on the side now and again but not as a business. I have a feeling as a buyer choices are going to start becoming more limited as people realize this policy is taking effect.
 
acidvoodoo said:
Yeah this sucks big time. I tried to unload all the stuff I wasn't using last year knowing this was coming. What's even worst is say you inherited some gear and wanted to sell it online, your screwed! Guitar Center used gear is going to get a lot more plentiful.
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If you inherit property, you get a step-up basis...the fair value of the property on the date the benefactor dies... becomes your cost basis. I would think that'd be easy to prove.
 
mhenson42 said:
If you inherit property, you get a step-up basis...the fair value of the property on the date the benefactor dies... becomes your cost basis. I would think that'd be easy to prove.
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Who determines the fair value if there's no receipts?
 
acidvoodoo said:
Who determines the fair value if there's no receipts?
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You could get whatever it is appraised - especially if high $. Or establish an approximate fair value by comparison to other recent sales - like on ebay or reverb - as long as it's a reasonable comp.
 
mhenson42 said:
You could get whatever it is appraised - especially if high $. Or establish an approximate fair value by comparison to other recent sales - like on ebay or reverb - as long as it's a reasonable comp.
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I’m not so sure. For example, in Georgia there is a law that when you purchase a car you pay a 1 time tax (6 or 7% depending on your county) for your tag. Then each year you just renew the tag for $20 for as long as you own the car. So, if you move there from out of state and want to get your tag changed to Georgia, the State uses a book to declare value and that’s it. Doesn’t matter what you paid or what you think. So I could see that expanding if the State thinks it’s losing a nickel somewhere.
 
mhenson42 said:
You could get whatever it is appraised - especially if high $. Or establish an approximate fair value by comparison to other recent sales - like on ebay or reverb - as long as it's a reasonable comp.
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That would be a pain in the ass if you had quite a few items.

A couple years ago I was left a bunch of collectables. I sold them on ebay not knowing there were any tax rules for a small casual seller...well I got completely blind sided f**ked by the irs with a 1099 because I went over 200 sold items, I think it was about 215 sales. That was a painful $10K lesson.
 
acidvoodoo said:
That would be a pain in the ass if you had quite a few items.

A couple years ago I was left a bunch of collectables. I sold them on ebay not knowing there were any tax rules for a small casual seller...well I got completely blind sided f**ked by the irs with a 1099 because I went over 200 sold items, I think it was about 215 sales. That was a painful $10K lesson.
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Well if you inherited something and immediately sold through ebay... you could argue the sales price was the fair value as it was arrived at through public auction.
 
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