Breaking News: Off the hook another year PayPal $600 rule postponed again.

MusicIsLife said:
To me it's a bunch of pants-wetting over nothing. It's a change in their reporting threshold, not a change in our actual tax burden. We're on the hook for the same things regardless of the 1099, and none of that is even remotely new.

I tend to acquire more gear than I sell each year. Even when I don't have gig revenue and it's just a "hobby", it's still a net loss, which I report and deduct. I also capitalize guitars, amps, and things like that, so I can carry depreciation on them, which is also deductible. Most of my local musician buddies don't report any of it, and they're probably leaving money on the table by doing so. Whatevs. I'm happy to find cover in their over-payment.

There's also this: if I don't want my personal gear sales treated as commerce, then I DON'T SELL IT COMMERCIALLY. Seriously, some of y'all seem really perplexed by why selling your shit commercially doesn't give you the same autonomy as selling it privately.
Click to expand...

Sure, it's not THAT big of a deal, but who wants to be bothered with having to prove losses on multiple transactions, and/or hire an accountant to navigate through what is, after all, nonsense. Let's be realistic.. I'd be willing to bet most who buy/sell on Reverb and Ebay alone, (as hobbies, or to earn a little extra cash), are middle or even lower class. That said, that would translate to targeting a certain demographic to pay their fair share. Like I said.. Pants wetting or not, it's utter nonsense and really serves no purpose other than to squeeze a few more bucks out of John Q Public that flipped a guitar that he made $200 profit on. The IRS gets richer, and John Q Public has a new tax burden, vs. spending that money to keep restaurants open, stores open, buy another guitar, etc. It's stupid.
 
Beyond Black said:
Speaking of fucking the middle class, how about he also starts with rescinding Trump’s 2 TRILLION dollar tax cut, of which 85% went to the top 1% and corporations?
Click to expand...
I benefited from those tax cuts, and I’m far from the top. This is just a bullshit communist talking point of which those that spout have no idea what they’re talking about.
 
Beyond Black said:
Speaking of fucking the middle class, how about he also starts with rescinding Trump’s 2 TRILLION dollar tax cut, of which 85% went to the top 1% and corporations?
Click to expand...
Corporate tax has never exceeded 400 billion during those cuts it accounted for a mere 140 Billion in cuts there.

Sort by 10y

https://fred.stlouisfed.org/series/FCTAX.

As for the 1percent their tax burden accounted for 42% of all personal income tax in 2020 which was higher than before the tax cuts.


IMG_0743.png
 
The dirty little truth that leftist don't want the public educated dumbed down masses to know is that corporations don't really pay taxes. They're paid for by their customers and or their employees with stagnate wages/layoffs. When we do our cost analysis every quarter to evaluate profit and losses, any taxes just go on the expense side. When expenses go up you either raise prices or cut somewhere. Usually any cuts come from current or future wage/job growth. You are already keeping other expenses down as much as possible. Corporations are made of people. Those people benefit when the corporation does well and suffer when it doesn't. But you know....THE MAN........
 
justin said:
The dirty little truth that leftist don't want the public educated dumbed down masses to know is that corporations don't really pay taxes. They're paid for by their customers and or their employees with stagnate wages/layoffs. When we do our cost analysis every quarter to evaluate profit and losses, any taxes just go on the expense side. When expenses go up you either raise prices or cut somewhere. Usually any cuts come from current or future wage/job growth. You are already keeping other expenses down as much as possible. Corporations are made of people. Those people benefit when the corporation does well and suffer when it doesn't. But you know....THE MAN........
Click to expand...

Like it or not, anyone that has a 401k has financial stake in corporations. I’d rather the corporations be profitable and stock perform well, unlike what they’re doing now.
 
MusicIsLife said:
There's also this: if I don't want my personal gear sales treated as commerce, then I DON'T SELL IT COMMERCIALLY. Seriously, some of y'all seem really perplexed by why selling your shit commercially doesn't give you the same autonomy as selling it privately.
Click to expand...
Unless I am wrong there is no differentiation between selling commercially or privately. I would venture to guess most private parties selling on Ebay or Reverb are not selling as a business yet are being sent 1099's on any sale above $600.00 and then they have to prove they lost money on an item or items or pay tax as if it is income...period the IRS doesn't care what you wish to call your transaction.

Now all of these items as Scottosan duly noted were bought new and it was taxed with income that was taxed, the it is taxed again for every resale regardless of whether or not it is a business for the private seller. Talk about endless taxation. Now if you run a resale business that's one thing but to lump in all private sales is not really what many would consider fair taxation. But if you were 33.8 trillion in debt with rising interest rates where soon you won't even be able to service the current debt you might be trying to squeeze every penny of revenue out of every source while the law of large number consumes the economy into full on Weimar Republic bankruptcy. I guess the US is determined to see if Modern Monetary Theory will actually work in lieu of actual real life economics.

If you haven't noticed the USA has almost racked up almost $800 billion dollars of new debt in 100 days since the US reached 33 Trillion dollars a mere 100 days ago as of right now it is 33.83 Trillion.

https://www.usdebtclock.org/
 
Transactions and income are being conflated in this thread. It is similar to the Wayfair decision a few years back, which allowed states to go after the sales tax (a transaction tax) owed to them under existing tax laws. You can sell the same item ten times, and each time you will incur a sales tax liability because it's a transaction tax. Marketplace providers just made it easier and states leveraged that technology to play catchup with the changing marketplace.

If you are a hobbyist buying and selling you will receive a 1099 but you will likely not have a tax liability because by definition a hobbyist is not in it for the money. If you are selling to make a profit (i.e., market value > cost basis), then you are not a hobbyist but a business subject to income tax. If that's the case, you've always been subject to the tax, the payment platforms have just made it more efficient for the federal government to play catchup.
 
JackTripper said:
Transactions and income are being conflated in this thread. It is similar to the Wayfair decision a few years back, which allowed states to go after the sales tax (a transaction tax) owed to them under existing tax laws. You can sell the same item ten times, and each time you will incur a sales tax liability because it's a transaction tax. Marketplace providers just made it easier and states leveraged that technology to play catchup with the changing marketplace.

If you are a hobbyist buying and selling you will receive a 1099 but you will likely not have a tax liability because by definition a hobbyist is not in it for the money. If you are selling to make a profit (i.e., market value > cost basis), then you are not a hobbyist but a business subject to income tax. If that's the case, you've always been subject to the tax, the payment platforms have just made it more efficient for the federal government to play catchup.
Click to expand...

To be fair before more bitching ensues the platforms were REQUIRED to make the changes to support the tax laws. This wasn't something any of them wanted to do as it was a lot of work that provides them absolutely zero benefit, and in the case of collecting sales tax negatively impacted their businesses.
 
You must log in or register to reply here.
Back
Top