Reverb/online selling 1099k info...

[Bloodrock]

So I had my taxes done today. Talked with my accountant about the 1099k from reverb selling. I was $9k over the 5k limit for taxes. Found out that I was able to claim the sales as "personal items" I was selling and had to declare that I didn't make any profit off them. Hence I was able to avoid taxes. BUT he said if I keep buying/selling I need to keep receipts for everything because the irs isn't going to allow it repeatedly year after year. I will get flagged as a reselling business. Apparently its because small businesses have been using various/multiple online payment systems for years to avoid taxes, we're just caught in the middle. Just some info I thought might be helpful...

 

[vultures]

It's such a racket. I stopped selling on Ebay because of it.

I sold a medium format camera & lens last year for $3,300. They sent a 1099k showing I made the full $3,300. After fees/shipping $2700+/- was direct deposited into my bank account. I had to dig for the form showing I profited $600 less. Luckily I kept the receipt from when I bought the camera, so I'm not paying taxes on it. It's just a fucking hassle, but I keep receipts for everything now.

 

[mbt64]

It may have been covered before, but when did they start collecting sales tax on used items? It drives me crazy that the same item can be taxed twice: once when purchased new and then any resale of it used.

 

[njshred]

It may have been covered before, but when did they start collecting sales tax on used items? It drives me crazy that the same item can be taxed twice: once when purchased new and then any resale of it used.

If you had co-signed said item prior to South Dakota vs Wayfair, they would have charged sales tax. All auto sales have sales tax every transaction.

Note, you were always supposed to pay the tax on the Use section of your state return, even in states that do not have state income tax.