The Blues Lawyer explains new rules & regulations of buying and selling on reverb and other marketplaces.

mooncobra

mooncobra

Well-known member
Pretty wild. I’ve heard guys interpret the new regulations quite differently than this. Either way, it’s pretty bogus. My mellow has been harshed upon.


 
Everything this guy says kind of flies in the face of a lot of info guys on here have been stating?

Multiple guys here saying you only owe taxes on the PROFIT you make when selling gear? Not according to this guy……
 
The term "Blues Lawyer" only makes me think of one place...

tgpants.jpg
 
gtrwun said:
Everything this guy says kind of flies in the face of a lot of info guys on here have been stating?

Multiple guys here saying you only owe taxes on the PROFIT you make when selling gear? Not according to this guy……
Click to expand...

I couldn't make it past the first few seconds. The comment above about the ill-fitting suit is spot on. lol

But in regards to what you owe tax on, it would only be the profit. But you must be able to substantiate a cost basis otherwise you could be liable (if audited) for tax on the full proceeds.
 
What’s just as bad is Reverb reads you PM’s.
Anybody get contacted by them yet about them somehow suspecting something?,
-or just informing you with a new agreement???
Done.

They’re acting like big bank babies, they take
a fiber, then it turns into a lamb chop, etc
-now our f’n privacy is their business.
Now I’m officially out.
 
Ok.. being serious here. So if sell an amp for 2k and dont have any receipts but I know I paid 1100 used. Sure I can write on a piece of paper that I joe Schmoe sold Phil this amp for 1100 but will the IRS accept that as an official receipt so I will only pay on the gains? Has anyone actually done this with their taxes and been ok? According to this guy that wont fly......
 
phil b said:
Ok.. being serious here. So if sell an amp for 2k and dont have any receipts but I know I paid 1100 used. Sure I can write on a piece of paper that I joe Schmoe sold Phil this amp for 1100 but will the IRS accept that as an official receipt so I will only pay on the gains? Has anyone actually done this with their taxes and been ok? According to this guy that wont fly......
Click to expand...

You can always fake a bill of sale. Not that I'd say to do that. lol Who knows what the IRS would do about it. You'd have to be audited first. It's not like you are submitting receipts with your return. You just have to list proceeds and cost basis...and gain/loss. A contemporaneous log of transaction activity is generally acceptable as evidence for certain activities (ie. mileage). Not sure if that would work here.
 
Dino 939 said:
What’s just as bad is Reverb reads you PM’s.
Anybody get contacted by them yet about them somehow suspecting something?,
-or just informing you with a new agreement???
Done.

They’re acting like big bank babies, they take
a fiber, then it turns into a lamb chop, etc
-now our f’n privacy is their business.
Now I’m officially out.
Click to expand...
Yeah, I just wrote them today to inform them I won’t be supplying them my SSN and they could block or close my account. I’m over it.
 
Use your favorite search engine and enter 1099k, Schedule C, Schedule D, and Form 8949. Hopefully that will put your minds at ease. This blues lawyer must have got his credentials from a cereal box. Not legal advice, but have been dealing with this a long time.
 
phil b said:
Ok.. being serious here. So if sell an amp for 2k and dont have any receipts but I know I paid 1100 used. Sure I can write on a piece of paper that I joe Schmoe sold Phil this amp for 1100 but will the IRS accept that as an official receipt so I will only pay on the gains? Has anyone actually done this with their taxes and been ok? According to this guy that wont fly......
Click to expand...
that’s not what I gathered from that at all. If you are a private party you cannot deduct a personal purchase at all.l, and you are taxed on the selling price. The receipts would only be applicable for legitimate businesses.
 
And if it was the case that you had to pay capital gains on the price you sold something for without deducting the original price you paid then why do we never get a 1099 when we sell/trade a car to the dealership? That's basically the same thing, especially when you sell gear for a loss.
 
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