ericn
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Post by ericn on Dec 30, 2021 15:59:11 GMT -6
I mean - I don’t make any money on anyone doing it there. Was just kindve being tongue in cheek. Just remember to pay taxes on any of the private sales you guys make As a seller you get less low ball, high hand holding buyers here than any where else, always a good thing.
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Post by nick8801 on Dec 30, 2021 16:01:06 GMT -6
Reverb sent me a W2 this year. I’m pissed. I sold a lot last year redoing my studio during all the lockdowns. Not sure what I’ll have to pay. Anyone have any experience with that?
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ericn
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Post by ericn on Dec 30, 2021 16:07:44 GMT -6
Reverb sent me a W2 this year. I’m pissed. I sold a lot last year redoing my studio during all the lockdowns. Not sure what I’ll have to pay. Anyone have any experience with that? You need to sit down with an accountant and figure it all out, since you probably didn’t deprecate any of it you might come out looking good. Honestly if anybody knows a good studio / music accountant or lawyer this would be great time to convince them to pop over and share some knowledge. I know there are perfectly legal ways to minimize our exposure, but I know my knowledge is just enough to get me in trouble.
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Post by tim on Dec 30, 2021 16:16:49 GMT -6
Did everyone forget the classifieds here? No, sorry was thinking about Reverb exposure people search there and apparently few other places . I almost always get hits from reverb with its fees and no or few hits on gs. I think a lot of buyers go with Reverb cus they know in a way they can take advantage of sellers after the fact , with Reverb support. And now Reverb is requiring sellers to pay for seller protection for order over 1500 in addition to their regular fees. Yeah, I think I'll start using the classifieds here and on GS a bit more going forward.
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Post by tim on Dec 30, 2021 16:19:13 GMT -6
Reverb sent me a W2 this year. I’m pissed. I sold a lot last year redoing my studio during all the lockdowns. Not sure what I’ll have to pay. Anyone have any experience with that? I sold a lot on Reverb this past year. Not looking forward to the tax bill either.
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Post by nick8801 on Dec 30, 2021 16:25:18 GMT -6
Reverb sent me a W2 this year. I’m pissed. I sold a lot last year redoing my studio during all the lockdowns. Not sure what I’ll have to pay. Anyone have any experience with that? You need to sit down with an accountant and figure it all out, since you probably didn’t deprecate any of it you might come out looking good. Honestly if anybody knows a good studio / music accountant or lawyer this would be great time to convince them to pop over and share some knowledge. I know there are perfectly legal ways to minimize our exposure, but I know my knowledge is just enough to get me in trouble. My accountant is great. When I talk to him, I’ll be sure to report back. Usually we just write off a loss for the studio and it all evens out.
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Post by kcatthedog on Dec 30, 2021 16:27:28 GMT -6
Ah why isn’t the buyer paying this tax ?
Am I just thinking Canadian, as we have our provincial taxes like your state taxes but also have federal goods and services taxes for purchasing goods and services.
Why are you taxed for selling something, in almost every case, it it’s used, you are selling at a loss, so where is the taxible benefit?
What are you being taxed for ?
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Post by nick8801 on Dec 30, 2021 16:30:50 GMT -6
Ah why isn’t the buyer paying this tax ? Am I just thinking Canadian, as we have our provincial taxes like your state taxes but also have federal goods and services taxes for purchasing goods and services. Why are you taxed for selling something, in almost every case, it it’s used, you are selling at a loss, so where is the taxible benefit? What are you being taxed for ? They pay tax on the purchase and now we pay taxes on the profit I guess? Someone is winning here and it’s not us!
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ericn
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Post by ericn on Dec 30, 2021 16:42:02 GMT -6
Ah why isn’t the buyer paying this tax ? Am I just thinking Canadian, as we have our provincial taxes like your state taxes but also have federal goods and services taxes for purchasing goods and services. Why are you taxed for selling something, in almost every case, it it’s used, you are selling at a loss, so where is the taxible benefit? What are you being taxed for ? They pay tax on the purchase and now we pay taxes on the profit I guess? Someone is winning here and it’s not us! There is the problem, the government views it as a tax on the TRANSACTION of the sale not the goods. So in the eyes of the government there is no distinction between the sales transaction if it for new or used goods, it’s still a sales transaction.
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Post by Johnkenn on Dec 30, 2021 16:44:53 GMT -6
Can I write off all the money I've lost re-selling overpriced analog gear?
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Post by mattbroiler on Dec 30, 2021 16:57:48 GMT -6
yes this is a serious question and I am interested to know more about what approach accountants take with this scenario
Whether one is an individual hobbyist or one operates as enough of a business to file a schedule c most gear sold will be at break even or a loss so one ought to be able to claim a legitimate tax loss on gear sales. Unless one is making a real profit selling gear in which case one should be taxed on the profit.
I don't see how the IRS can claim that 100% of the proceeds from every sale are pure income/profit because from a cost of goods sold perspective they are not.
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Post by kcatthedog on Dec 30, 2021 17:27:35 GMT -6
Everything I have sold is for less than I paid for it snd you would also have to factor in all the costs, shipping, insurance etc., I think the idea that it is just a transactional tax must be the basis.
Should incent people to get a business number and track expenses ?
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ericn
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Post by ericn on Dec 30, 2021 17:28:15 GMT -6
Can I write off all the money I've lost re-selling overpriced analog gear? If you set it up as a buisness you would be writing off the depreciation every year.
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Post by Johnkenn on Dec 30, 2021 17:29:35 GMT -6
Can I write off all the money I've lost re-selling overpriced analog gear? If you set it up as a buisness you would be writing off the depreciation every year. I probably need to think about setting up an LLC, right?
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Post by rob61 on Dec 30, 2021 17:37:23 GMT -6
You must show a profit 3 of the last 5 years to be considered a legitimate business by the IRS, in other words, to claim depreciation on the equipment you purchase. If you've purchased the equipment for said business, you may deduct all or part (depending on the depreciation schedule you are permitted). Once fully depreciated, when you sell the equipment you have to pay tax on the residual value which is treated like income except you do not have to pay FICA taxes on it. So there is a slight advantage.
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ericn
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Post by ericn on Dec 30, 2021 17:38:40 GMT -6
If you set it up as a buisness you would be writing off the depreciation every year. I probably need to think about setting up an LLC, right? You probably should, it’s why I think we really need to get an entertainment accountant and lawyer over here. I think a lot of people would be surprised what taxes they could minimize. I’m the exception, we don’t want a record that shows what I can do when I’m feeling good. It’s like my Dr trying to get me to tie my iPhone fitness tracker to my medical record “ are you fing nuts? You want me to hand them a record of what I can do for review? “
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Post by EmRR on Dec 30, 2021 17:56:25 GMT -6
If you wrote it off, you didn't pay taxes. (Other than maybe property taxes, see below)
If you sold it later, you recouped money, maybe a loss, maybe a profit over original cost. That is now taxable, and differently depending on gain/loss and how long it was owned.
If you reinvest it in something else.....that's deductable. No taxes.
Now all that's different from the hobbiest who isn't running a business. But wait, many are competing against registered businesses.....so....what's 'fair' again? While we're bitching about 'the biz'.
You want to get annoyed? Be a business paying local property tax on all your business assets, and count all your 'competitors' who are totally under the table, working outside of zoning rules, etc.
There's nothing special here.....
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Post by Johnkenn on Dec 30, 2021 19:00:18 GMT -6
I probably need to think about setting up an LLC, right? You probably should, it’s why I think we really need to get an entertainment accountant and lawyer over here. I think a lot of people would be surprised what taxes they could minimize. I’m the exception, we don’t want a record that shows what I can do when I’m feeling good. It’s like my Dr trying to get me to tie my iPhone fitness tracker to my medical record “ are you fing nuts? You want me to hand them a record of what I can do for review? “ I mean, I don’t know what else I could possibly write off lol
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Post by drumsound on Dec 30, 2021 20:48:06 GMT -6
So which selling platform doesn't have a bad rap? HMMM...maybe there's a hole in the market. This sounds like something I should spend a week looking into and then suddenly realize I'm in completely over my head... I feel this energy, John. I'm totally that guy too.
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Post by the other mark williams on Dec 30, 2021 22:00:13 GMT -6
Can I write off all the money I've lost re-selling overpriced analog gear? depending on how long you’ve owned it, and how you classified in your Schedule C taxes the year you bought it, you absolutely can.
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ericn
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Post by ericn on Dec 30, 2021 22:02:08 GMT -6
HMMM...maybe there's a hole in the market. This sounds like something I should spend a week looking into and then suddenly realize I'm in completely over my head... I feel this energy, John. I'm totally that guy too. Yeah then you realize credit card fees 3 to 5 percent, Amazon web hosting fees,… and realize the margins still suck!
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Post by drumsound on Dec 30, 2021 22:38:21 GMT -6
I feel this energy, John. I'm totally that guy too. Yeah then you realize credit card fees 3 to 5 percent, Amazon web hosting fees,… and realize the margins still suck! Yep
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Deleted
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Post by Deleted on Dec 31, 2021 5:02:15 GMT -6
Ah why isn’t the buyer paying this tax ? Am I just thinking Canadian, as we have our provincial taxes like your state taxes but also have federal goods and services taxes for purchasing goods and services. Why are you taxed for selling something, in almost every case, it it’s used, you are selling at a loss, so where is the taxible benefit? What are you being taxed for ? They pay tax on the purchase and now we pay taxes on the profit I guess? Someone is winning here and it’s not us! Just out of curiosity is that profit over list or RRP? Or just anything you sell?
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Post by kcatthedog on Dec 31, 2021 5:43:22 GMT -6
Maybe as a start, you guys should start a recording expenses tax thread and compare notes about what are allowable expense and how to document them ? I say, you guys, as I’m the crazy Canuck, so no dog in this race. Unless, there is a BURTT (burgeoning international reciprocal tax treaty) , in which case, I’m screwed, oh, and happy new year: Joe and Justin !
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Post by nick8801 on Dec 31, 2021 6:32:14 GMT -6
They pay tax on the purchase and now we pay taxes on the profit I guess? Someone is winning here and it’s not us! Just out of curiosity is that profit over list or RRP? Or just anything you sell? Total sales
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