Did anyone notice this from Reverb?

espquade

Well-known member
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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crwnedblasphemy

Well-known member
Yup...Reverb is pretty slender. I deleted my account just before they had a security breach. I wasn't comfortable with them having my bank info. I have since bought one item on there, but they don't require for buyers.
 

glpg80

Well-known member
A few of us have been warning of this for quite a while on the forum if you do a search. You’ll find it’s discussed and how it should be handled come tax time.

People don’t know that it’s not just reverb. Banks will be required to report all transactions on a 1099-k that are over $600 as well, and you’ll have to use that 1099-k come tax time in 2023.

All I have to say is that if you buy something you have nothing to worry about. If you sell something you better hang onto the transaction receipt and also document proof of value at that time when it was sold. An audit over an entire year of gear flipping for some on the forum could spell a headache even if you don’t make a profit.
 

ClintN667

Well-known member
We shouldnt even be paying sales tax on used gear anyway. I quit selling on Reverb last year. I dont like that after I list something used take off 20-40% of what I paid for it then they add another 5-10% on taxes making a deal not as attractive. I will just sell locally now. Imagine in the life span of a piece of gear getting taxed at each change of hands?
 

MadAsAHatter

Well-known member
Like you said I would understand it if it's a business, but if I'm just trying to unload a few pedals I haven't used in a while it's a bit ridiculous. Might as well start taxing the weekend garages sales while they're at it.
 

scottosan

Well-known member
It’s important everyone vote this midterm. Keep an eye on the inflow outflow legislation they’re trying to push through now which will give the IRS visibility into every banking transaction if you have over 10k inflow or outflow in a given year. This is pretty much much any adult. Since direct deposit bill pay etc. This beyond big brother and will lead to higher tax burdens and what I fear is also setting up for more tools to squash political opposition.
 
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johnpace2

Well-known member
If you get a 1099 for selling gear, wouldn't you then deduct the cost of that gear when you do your tax return? Cost basis versus sale price?
 

scottosan

Well-known member
Like you said I would understand it if it's a business, but if I'm just trying to unload a few pedals I haven't used in a while it's a bit ridiculous. Might as well start taxing the weekend garages sales while they're at it.
So, in order for you to not have a tax burden on the full amount, will we have to prove our cost of that item so that were only taxed on the profit?
 

hevinkinds

New member
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:
The $20k/1099 report stays the same but the $600 thing is akin to capital gains tax. Think of it that way.
 

Mikeyboyeee

Well-known member
A few of us have been warning of this for quite a while on the forum if you do a search. You’ll find it’s discussed and how it should be handled come tax time.

People don’t know that it’s not just reverb. Banks will be required to report all transactions on a 1099-k that are over $600 as well, and you’ll have to use that 1099-k come tax time in 2023.

All I have to say is that if you buy something you have nothing to worry about. If you sell something you better hang onto the transaction receipt and also document proof of value at that time when it was sold. An audit over an entire year of gear flipping for some on the forum could spell a headache even if you don’t make a profit.
Banks do not have to report transactions over $600. That was in Biden's Build Back Better BULLSHIT which as we know, Manchin has effectively killed thus far (and was stripped out before that anyway).
 

Wizard of Ozz

Well-known member
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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Wizard of Ozz

Well-known member
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:


They are already monitoring PP as of 1-1-2022. Any payment for goods/services you receive over $600 will auto generate a 1099 to be sent to you as income to claim. And it will be up to you to prove depreciation, and no profit gained from the transaction.

Basically... JB's Bend Over and Cough Harder Plan.
 

SpiderWars

Well-known member
If you don't make a profit on the sale there is NO tax.

Also consider this; IRS have a LOT of work. They have better things to do than audit some ham and egger like me over $600 receipts. I'm am totally not worried about it since I don't make a profit.

And lastly, I'm not so sure you have to prove you did not make a profit. Rather, I think it is on them to prove that you DID make a profit...on a $600 sale. Good luck with that IRS. Disclaimer: I don't know this to be the case but...innocent until proven guilty and all that. EDIT: And writing paper receipts after the fact is oh so easy to do.
 
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