Reverb tax free

[DaveP]

Anyone else using this?

https://reverb.com/page/reverb-sites

I added my Reverb shop and it works great. It's sub site that is still part of Reverb and payment are made through Reverb. But... Reverb doesn't tax it.
Not sure if there is a catch to this but I sold a 4500 dollar guitar and purchased a few items this way.
In your listing you have to steer the buyer over to your store via the store link. The same listing that are on Reverb appear in your store.

Fuck the Gov. for taxing used gear over and over again.

 

[Rick Lee]

Subscribed!

 

[psychodave]

This is interesting. Wonder if reverb reports the transactions to the IRS?

 

[DaveP]

This is interesting. Wonder if reverb reports the transactions to the IRS?

Not sure, it's really a basic site. Not a lot of options on the sub site.
From what I understand and I could be wrong Reverb charges tax on everyone in the normal site. I don't think they have to unless you sell over a certain amount. like 200,000 a year.
They just do it to cover themselves. The sub site appears to be a private selling portal.

 

[DaveP]

edit

 

[LP Freak]

If it seems to good it probably is

 

[DaveP]

Maybe Reverb felt the hit with the tax BS and found a loophole.

 

[Rick Lee]

It really should be up to buyers and sellers to handle the sales tax, not an Internet site. If sites can't be held responsible for content posted by third parties, I don't know why it's now their job to collect money for the state. Oh, and I got a temporary ban on TGP for saying something to this effect in someone else's post a while ago.

 

[Fiesta Red]

It really should be up to buyers and sellers to handle the sales tax, not an Internet site. If sites can't be held responsible for content posted by third parties, I don't know why it's now their job to collect money for the state. Oh, and I got a temporary ban on TGP for saying something to this effect in someone else's post a while ago.

It's now their job because the government passed a law that made it their job.

 

[crankyrayhanky]

I did see this
Interesting ethics question

 

[skullfxr]

Great way to get the IRS ten feet up your ass.

 

[Inearthed]

If it seems to good it probably is

Agreed.

Sellers are still on the hook for collecting and remitting tax based on the buyer's state. On the core Reverb marketplace, Reverb handles that for the seller. On Reverb Sites, sellers have to option of not using Reverb to collect and remit it on their behalf. Seems like a GREAT idea...until they get caught, and then they (sellers) have to cough up the taxes that they opted not to collect from the buyers, plus interest, plus penalties.

Yep, Uncle Sam (or whatever the equivalent is called at the state level) will come calling to collect... Might not be today or tomorrow but sometime. Plenty of states need that $$$ and will gladly pay someone getting $12 an hour to start bugging you.

 

[Rick Lee]

Great way to get the IRS ten feet up your ass.

IRS doesn't care about state sales tax, even when it's across state lines. It probably depends on how strict your own state is on this stuff.

 

[DaveP]

eBay a while back was sending out tax documents only if you sold in excess of a certain amount.
I can't find it anywhere on Reverb's site but I would think that may be the case.
I don't think the IRS is gonna come knocking for Joe Schmo's guitar pedals sales that where under 10,000 a year (or whatever amount)
In excess of 200,000 maybe.

 

[Rick Lee]

The IRS would only get involved if you get 1099s from eBay, Reverb or PayPal and then don't report that income. I forget the dollar amount, but I think it was $20k or 200 transactions in a calendar year. Mrs. Lee got one for her eBay sales a few years back and it was an accounting nightmare to reconstruct all the stuff she should have been keeping track of to wash out most of that revenue.

 

[maddnotez]

Still not sure how this works but I think it is based off your location and where you buy it from.

Example - I live in MO. Just bought an item from a guy in UT via Reverb, no tax was charged.

Last week I bought a Kemper. Almost bought one via Reverb but was going to have to pay over $200 in tax so I passed. The seller was a Brick and Mortar music store in MO. (item was used)

So I think if you are buying from an actual store you will be taxed no matter where they are located and if you are buying from a private seller it depends on their state tax laws.

 

[glip22]

I spoke with a private dealer and purchased a Custom Shop Charvel. He told me that he is not liable to report sales tax because he is under a 200,000 business. He said any business under 200,000 is exempt. This was direct through his site. fwiw

 

[ghosty999]

For importing to the UK you get slapped with a customs and import charge as the item didn't make any UK VAT upon it's sale new in the USA. It makes sense but it really is a pain when you realize you've paid a faceless organization money for doing absolutely nothing.

 

[Meeotch]

Ok I'm here to clear some things up. I just bought a guitar from a shop in WI. I asked the owner if he could sell it to me tax free, and he correctly responded YES because he is a small shop and won't be doing anywhere close to $100,000 in sales in my state (CO).

Basically it all boils down to each individual state's economic threshold for total revenue or number of transactions in that state. For most states, this threshold is $100,000 - $200,000 in sales and/or 100 - 200 transactions in one year before you’re legally obligated to collect and remit sales tax to that state.

Check here for details on individual states: https://blog.taxjar.com/economic-nexus-laws/

 

[DaveP]

Ok I'm here to clear some things up. I just bought a guitar from a shop in WI. I asked the owner if he could sell it to me tax free, and he correctly responded YES because he is a small shop and won't be doing anywhere close to $100,000 in sales in my state (CO).

Basically it all boils down to each individual state's economic threshold for total revenue or number of transactions in that state. For most states, this threshold is $100,000 - $200,000 in sales and/or 100 - 200 transactions in one year before you’re legally obligated to collect and remit sales tax to that state.

Check here for details on individual states: https://blog.taxjar.com/economic-nexus-laws/

So Reverb doesn't have to charge tax but do it anyway to cover themselves. Hence the sub site.