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Post by the other mark williams on Feb 25, 2022 10:59:26 GMT -6
I keep telling you guys to try facebook's Marketplace. My last 4 of 5 sales came from a listing there. It's all done privately, facebook is not in on the action. Paypal or Venmo will take a small slice. You handle the rest. John, sounds like you need to check on the tax thing with an accountant, something doesn't seem right there. Oh, I will never list on Reverb or eBay. They're just way to much hassle for me. I only use Facebook, Craigslist, (which still works occasionally), and the classifieds here at RGO. If you're using Paypal or Venmo through Facebook they will be reporting your sales over the $600 mark and you'll get a 1099 this year from them. So you'll get taxed at tax time next year. Only way to avoid it at this point is cash only. Apparently not if you use the friends and family or personal option. Only if you say it was for goods/services rendered within the app in question. |
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Post by srb on Feb 25, 2022 11:09:00 GMT -6
I would think "friends and family" would assume forgoing any recourse as well.
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Post by Blackdawg on Feb 25, 2022 14:46:16 GMT -6
If you're using Paypal or Venmo through Facebook they will be reporting your sales over the $600 mark and you'll get a 1099 this year from them. So you'll get taxed at tax time next year. Only way to avoid it at this point is cash only. Apparently not if you use the friends and family or personal option. Only if you say it was for goods/services rendered within the app in question. I think I've read that if you do that you need to put a memo on it that says something like "For dinner" or whatever. Otherwise it could still count. And while this is I think fine for actual friends or even good acquaintances I would NEVER do that with someone I don't know as you forfeit all protections. |
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Post by the other mark williams on Feb 25, 2022 15:45:41 GMT -6
Apparently not if you use the friends and family or personal option. Only if you say it was for goods/services rendered within the app in question. I think I've read that if you do that you need to put a memo on it that says something like "For dinner" or whatever. Otherwise it could still count. And while this is I think fine for actual friends or even good acquaintances I would NEVER do that with someone I don't know as you forfeit all protections. I'm certainly not recommending it as a tax strategy or anything--and yes, you'll actually lose PayPal buyer protections--but apparently at this time, PayPal and Venmo will only issue a 1099 if you have selected goods and/or services. It's not a matter of the memo line - it's the designation of the type of transaction. So that leaves compliance to this whole thing up to whoever is initiating the transaction. |
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Post by zonkola on Feb 26, 2022 23:54:33 GMT -6
Here's a Reverb article with more info on the 1099 reporting of sales. My understanding—not a tax accountant—is that in the worst case scenario you'd need to dig up receipts for the gear you bought n days/months/years ago then sold during the year on Reverb, to show an overall loss from selling the gear. In this case the sales wouldn't count as taxable income, so no worries. If, on the other hand, you were lucky enough to turn a profit on the gear you sold, that profit would count as taxable income. |
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Post by ericn on Mar 1, 2022 12:27:16 GMT -6
What will be interesting is the max exudes next year around this time from Ebay reverb etc as sellers do their taxes. Judging by the 3 sellers I have communicated with this week, they don’t understand nor really keep records so they will probably be burnt by these no rules.
Of course my cynical gut feeling is both Reverb and EBay are probably rolling out higher fee versions of their selling platforms that will help track all the details and are designed to save you exactly 2 cents on your taxes.
Of course I mentioned the whole state internet tax collection thing to a city council man, I’m betting his next week is spent in meetings trying to figure out if the City can collect sales tax on all the out of jurisdiction mail order purchases.
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Post by ericn on Mar 1, 2022 12:28:25 GMT -6
You know what screw it Im buying a boat and waiting for UPS drone delivery to international waters!
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Post by teejay on Dec 13, 2022 18:21:23 GMT -6
So I'm continuing to get pinged by Reverb asking for my tax ID for end-of-year reporting due to my minimal sales this past year. I haven't sold anything there for a while because I don't want to give them that info, and the threats of witholding any payments until I do is not a current issue. What happens if I just don't use the site to sell anymore and don't provide them with the tax info? Do my "earnings" still somehow get reported to the IRS for 2022 taxes? And no, I didn't make any money off of anything I sold...always sold it for less than purchase price.
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Post by ericn on Dec 13, 2022 18:58:39 GMT -6
So I'm continuing to get pinged by Reverb asking for my tax ID for end-of-year reporting due to my minimal sales this past year. I haven't sold anything there for a while because I don't want to give them that info, and the threats of witholding any payments until I do is not a current issue. What happens if I just don't use the site to sell anymore and don't provide them with the tax info? Do my "earnings" still somehow get reported to the IRS for 2022 taxes? And no, I didn't make any money off of anything I sold...always sold it for less than purchase price. They will report them with just name and address, nothing will probably happen, unless of course someone at the IRS really dislikes you. |
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Post by drbill on Dec 13, 2022 19:53:02 GMT -6
87,000 reasons they might need to find something to do.....
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Post by ericn on Dec 13, 2022 19:54:58 GMT -6
87,000 reasons they might need to find something to do..... To paraphrase no money, no problems.😎 |
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Post by indiehouse on Dec 13, 2022 19:56:04 GMT -6
So I'm continuing to get pinged by Reverb asking for my tax ID for end-of-year reporting due to my minimal sales this past year. I haven't sold anything there for a while because I don't want to give them that info, and the threats of witholding any payments until I do is not a current issue. What happens if I just don't use the site to sell anymore and don't provide them with the tax info? Do my "earnings" still somehow get reported to the IRS for 2022 taxes? And no, I didn't make any money off of anything I sold...always sold it for less than purchase price. If you didn’t make any profit, then why avoid the 1099? |
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Post by drbill on Dec 13, 2022 19:56:56 GMT -6
And no, I didn't make any money off of anything I sold...always sold it for less than purchase price. Todd - form a "business", then file a schedule C and associated tax return BS. Not only will you be able to buy and sell more gear, but you will get additional benefits of being a "business" as far as the IRS is concerned. You need not be an LLC or have a storefront. All you have to do it have a financial reason for buying / selling gear. It could be that you're trying to turn a profit on the gear but the market is bad and you took a loss. Could be that you occasionally "sell" studio time. Could be that you are an artist that sells music (successful or not) and you need to have gear to make music. Businesses have losses all the time. The trick is occasionally having a good year where you MAKE money. Doesn't have to be a lot of money - could be $500. And you pay taxes on that profit amount - which is a paltry $100-150. The benefit being that you can write off all your other purchases which amount to way more than $150 in savings - and that will lower your overall tax liability. Get a good accountant that understands our business and hire them. You will end up with more money and gear in your pocket even after paying for the accountant. Go ahead and give me a shout if I can help. I have been way down in the weeds on these matters, and being uninformed costs WAAAAaaaaaaaayyyyy more money when it comes to taxes. Trying to avoid the IRS via not informing PayPal is not a winning strategy IMO. Turn this negative into a net positive. Give me a shout. Good luck!! |
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Post by christopher on Dec 13, 2022 20:10:30 GMT -6
I just want to offer a friendly reminder for folks to consider talking with a pro, because the gig companies have exploited the small business tax write off angle, and states (maybe fed too?) have responded by re-writing the rules.. of course screwing the smallest of small businesses, which are gig workers, where things worked one way for decades and are now all messed up here in CA. So many jobs are now 1099 to keep wages low, expecting you to write off losses. IRS can deny things and you get a bill for a year of taxes you thought were write offs. It’s frustrating
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