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Post by Bat Lanyard on Dec 1, 2021 14:21:25 GMT -6
I wasn't aware of the changes until I got an email from Reverb just now about it. The most important being the threshold going down from $20K to $600. (Just some random info I found on it.) Planning on consulting my CPA to ask about how it'll work going forward. |
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Post by Tbone81 on Dec 1, 2021 14:31:48 GMT -6
Just one more reason for me not to sell on reverb.
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Post by marlem on Dec 1, 2021 14:48:30 GMT -6
I gave up on Reverb, since they got greedy and upped their fees I just had to.
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Post by Blackdawg on Dec 1, 2021 15:41:09 GMT -6
this is going to affect way more than just reverb sales for a lot of people.
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Post by Bat Lanyard on Dec 1, 2021 17:02:09 GMT -6
I've had an easy time selling here which has been great, both connecting to people and not paying fees. I kick a little something back to the RGO Donate button when something sells as well. Sometimes you have stuff that's really specialized and hard to move though.
Agreed on the Reverb fees and how this will affect business elsewhere. That's a HUGE drop in the threshold. But if selling something years after I bought it is now considered income, forget that nonsense.
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Post by bgrotto on Dec 1, 2021 23:18:34 GMT -6
Reverb is dead to me. I've been sticking with local sales, and selling here and on FB and GS. Works fine.
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Post by EmRR on Dec 2, 2021 8:20:11 GMT -6
I've had an easy time selling here which has been great, both connecting to people and not paying fees. I kick a little something back to the RGO Donate button when something sells as well. Sometimes you have stuff that's really specialized and hard to move though. Agreed on the Reverb fees and how this will affect business elsewhere. That's a HUGE drop in the threshold. But if selling something years after I bought it is now considered income, forget that nonsense. It’s like any business, its income until it’s not. If it’s been expensed, it balances back against that and long term any profit difference is capital gains. If it’s a ‘loss’ compared to cost there’s no income other than the recapture against the original deduction. |
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Post by Bat Lanyard on Dec 2, 2021 8:24:12 GMT -6
I've had an easy time selling here which has been great, both connecting to people and not paying fees. I kick a little something back to the RGO Donate button when something sells as well. Sometimes you have stuff that's really specialized and hard to move though. Agreed on the Reverb fees and how this will affect business elsewhere. That's a HUGE drop in the threshold. But if selling something years after I bought it is now considered income, forget that nonsense. It’s like any business, its income until it’s not. If it’s been expensed, it balances back against that and long term any profit difference is capital gains. If it’s a ‘loss’ compared to cost there’s no income other than the recapture against the original deduction. I'm not a taxman but that's inline with what I was thinking the washout would be. |
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Post by mike on Dec 3, 2021 20:29:40 GMT -6
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Post by EmRR on Dec 4, 2021 7:50:30 GMT -6
I don’t get it. If the tax man comes for you, he comes for you. This makes no difference. 1099 is a requirement on their part, not ours. Our requirement as seller is technically unaffected, the bit that’s on us is unchanged.
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Post by mike on Dec 4, 2021 10:00:01 GMT -6
I don’t get it. If the tax man comes for you, he comes for you. This makes no difference. 1099 is a requirement on their part, not ours. Our requirement as seller is technically unaffected, the bit that’s on us is unchanged.
Perhaps I misunderstand the change,....but I was thinking if the threshold is moved down from 20k to $600 on Reverb sales triggering a income report from Reverb to the IRS and thereby increasing your reported income,.... means a little more time sellers will need to do their tax forms, accounting and receipt retrieving to be able to verify and prove if audited the offset expense for the item when it was purchased to show net profit or loss. That's not a big deal for me selling something I bought the last few years having receipts at my fingertips,.... but I admit finding a receipt if at all on some gear purchased from years ago for an item I sell on Reverb in 2022 to offset the reported income may be another matter and time consuming at the least. And I would guess if you sell an item for x amount, but you depreciated it's original expense on your taxes in earlier years, that you may not be able to use the original purchase cost to offset your sale income. If that's true it means more digging on past taxes to remember whether you depreciated an item in the past or not. I may misunderstand the changes, but if I don't. I'd guess those changes will matter to some
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Post by Tbone81 on Dec 4, 2021 10:40:17 GMT -6
In some years I’ve sold several thousand dollars worth of gear on eBay, and I’ve never received a 1099 from them…just saying
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Post by Deleted on Dec 4, 2021 12:33:31 GMT -6
I think this may be a new IRS rule. PayPal/Venmo are doing the same thing at the start of the year.
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Post by ericn on Dec 16, 2021 11:50:43 GMT -6
I think this may be a new IRS rule. PayPal/Venmo are doing the same thing at the start of the year. Michael not a new rule per say, you were always required to report it, they are just requiring large market places to report it all. |
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Post by Tbone81 on Dec 16, 2021 13:46:20 GMT -6
Venmo, Paypal, Zelle and all other 3rd party apps have to now report the same gross "sales". Personal payments, like giving your roommate money for rent, are exempt. As is selling personal items for a loss. The problem will be how those things are recorded, and it will require all of us who buy and sell lots of gear to keep way better records and will be a potential big hassle for us come tax time.
From Forbes:
The new rule results from the American Rescue Plan signed into law in March 2021 and will mainly impact business owners using third-party payment network providers. The IRS is cracking down on payments received through apps, such as Cash App, Zelle or Paypal to ensure those using the third-party payment networks are paying their fair share of taxes.
Previously, the IRS only required third-party payment networks to report payments that met both of the following reporting requirements:
1) Gross payments that exceed $20,000, AND
2) More than 200 transactions within the current year.
Beginning Jan. 1, 2022, third-party payment networks will be required to send users Form 1099-K for transactions made by mail or electronically. This means you don’t have to worry just yet: The new tax reporting requirement will impact your 2022 tax return filed in 2023.
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