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Post by soundintheround on Dec 26, 2022 5:37:03 GMT -6
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Post by soundintheround on Dec 26, 2022 5:38:10 GMT -6
Assuming this will be true for Reverb.com too!
Merry Christmas!
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ericn
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Balance Engineer
Posts: 16,107 
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Post by ericn on Dec 26, 2022 14:32:25 GMT -6
We all new it it was coming and the reason it went this way is we were all supposed to be good little boys and girls and self report, well we weren’t, myself included. So the government rewrote the rules, now is it a big deal ? Probably not if you kept good books, is it going to hurt, a bit. Should they be going after the bigger fish well yeah, but it’s cheaper to go after the little guys.
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Post by lpedrum on Dec 26, 2022 17:19:07 GMT -6
We all new it it was coming and the reason it went this way is we were all supposed to be good little boys and girls and self report, well we weren’t, myself included. So the government rewrote the rules, now is it a big deal ? Probably not if you kept good books, is it going to hurt, a bit. Should they be going after the bigger fish well yeah, but it’s cheaper to go after the little guys. I understand (somewhat) that the article states that the IRS is delaying the change until 2023. Have I got that right? |
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ericn
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Balance Engineer
Posts: 16,107
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Post by ericn on Dec 26, 2022 17:23:38 GMT -6
We all new it it was coming and the reason it went this way is we were all supposed to be good little boys and girls and self report, well we weren’t, myself included. So the government rewrote the rules, now is it a big deal ? Probably not if you kept good books, is it going to hurt, a bit. Should they be going after the bigger fish well yeah, but it’s cheaper to go after the little guys. I understand (somewhat) that the article states that the IRS is delaying the change until 2023. Have I got that right? Not sure, unfortunately the smart move buy the big guys would be smart to send them out this year to make sure their systems work before they are legally required to if it has been delayed. |
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Post by jacobamerritt on Dec 26, 2022 17:32:20 GMT -6
Hilarious and sad that even the IRS' own press release feels confusing and convoluted.
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ericn
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Balance Engineer
Posts: 16,107
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Post by ericn on Dec 26, 2022 17:37:30 GMT -6
Hilarious and sad the even the IRS' own press release feels confusing and convoluted. I have come to the conclusion that anything the IRS puts to paper is designed to confuse a top accountant or tax lawyer and is designed so that it will take at least 3 billable hours for them to get an explanation for you. And yeah I used to live 3 blocks from one of the larger IRS regional offices. |
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Post by bentley on Dec 26, 2022 18:09:47 GMT -6
We all new it it was coming and the reason it went this way is we were all supposed to be good little boys and girls and self report, well we weren’t, myself included. So the government rewrote the rules, now is it a big deal ? Probably not if you kept good books, is it going to hurt, a bit. Should they be going after the bigger fish well yeah, but it’s cheaper to go after the little guys. I understand (somewhat) that the article states that the IRS is delaying the change until 2023. Have I got that right? According to my brother who works as a CPA, the changes are indeed delayed until 2023. He did confirm there's still a threshold of $20,000 and more than 200 transactions but wasn't quite sure if it was an either/or situation on this part. |
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Post by seawell on Dec 26, 2022 21:05:07 GMT -6
If the government would quit pissing away all our money every which way the wind blows, this and many other rules would be needless.
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Post by the other mark williams on Dec 26, 2022 21:18:34 GMT -6
If the government would quit pissing away all our money every which way the wind blows, this and many other rules would be needless. This is a tough one though, brother. Something I might see as “pissing away our money” might be something you see as essential, and vice-versa. I won’t say more, because I really don’t want to see the thread go there, just wanted to offer a nonspecific counternarrative. Peace, my friend. |
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Post by the other mark williams on Dec 26, 2022 21:33:10 GMT -6
Oh, and also: to the OP, there are already like 3 or 4 multipage threads discussing and debating this topic from earlier in the year, albeit before the most recent news about possible delays on some of this. What ericn said is true, though: this is not a substantive change in how things have always been. We were always supposed to report any income related to business activity, including gear sales. My late father was a CPA, so he schooled me in this 25 years ago. I’ve always reported all this stuff because it was always the law (and my Dad told me I had to!). Oh, and those places online that tout how they don’t collect sales tax, implying (or outright stating) that you can shop there cheaper? Well, it depends on whether your state requires it or not. It ain’t up to B&H. North Carolina requires me to pay sales tax to them if the retailer didn’t collect it. I can lie and not tell the IRS that the asset I bought for my business never had sales tax collected, but if I get caught, I’m going to owe back taxes with interest to the state of NC. I’m not super interested in getting involved in a disagreement with the IRS or the NC Dept of Revenue. But hey, that’s just me. |
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Post by seawell on Dec 26, 2022 22:02:11 GMT -6
If the government would quit pissing away all our money every which way the wind blows, this and many other rules would be needless. This is a tough one though, brother. Something I might see as “pissing away our money” might be something you see as essential, and vice-versa. I won’t say more, because I really don’t want to see the thread go there, just wanted to offer a nonspecific counternarrative. Peace, my friend. Edited: actually never mind, I’m chilling at least until the new year 🤣 .…peace Mark ✌🏻 |
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Post by Bat Lanyard on Dec 26, 2022 22:06:57 GMT -6
"American Rescue Plan"
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Post by the other mark williams on Dec 26, 2022 23:06:02 GMT -6
This is a tough one though, brother. Something I might see as “pissing away our money” might be something you see as essential, and vice-versa. I won’t say more, because I really don’t want to see the thread go there, just wanted to offer a nonspecific counternarrative. Peace, my friend. Edited: actually never mind, I’m chilling at least until the new year 🤣 .…peace Mark ✌🏻 Amen, Josh! We all need a break from the madness, man. Happy holidays to the Triad! |
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Post by soundintheround on Dec 26, 2022 23:28:23 GMT -6
I went from hitting on pots and pans in the basement … to a drummer in a band… to an enlightening recording first time experience … to being the guy that knew how to record on a crappy 8 track and friends would come over:
Fast forward ~15 years (putting every last penny towards this crazy hobby) and i now own quite a bit of stuff.
Unfortunately I know nothing about business, taxes, or any of this.….really just a guy buying vintage junk on eBay and keeping a small fraction of my favorite pieces.
However, i must say did learn a whole bunch about the taxes this year and the process. Maybe i will eventually have a legit go at this as a business. Until then, it was kinda funny to see they wait until the last week of the year to say …. Nevermind, were not actually gonna tax you.
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cj
Full Member
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Post by cj on Dec 27, 2022 10:49:44 GMT -6
I understand (somewhat) that the article states that the IRS is delaying the change until 2023. Have I got that right? According to my brother who works as a CPA, the changes are indeed delayed until 2023. He did confirm there's still a threshold of $20,000 and more than 200 transactions but wasn't quite sure if it was an either/or situation on this part.
After the delay announcement, the current regulations are now.
For calendar years 12/31/2022 and prior, gross payments that exceed $20,000 AND more than 200 transactions will be reported on Form 1099K.
For calendar years 1/1/2023 and after, gross payments for goods and services that exceed $600 AND any number transactions will be reported on Form 1099K.
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Post by mike on Dec 27, 2022 11:17:55 GMT -6
Reverb email response on Dec 27:
So I sent Reverb Customer Service a specific question in light of the IRS decision on Dec 23rd to push the $600 threshold back a year to 2023, of will Reverb follow that directive and wait a year to report the required $600 threshold and their email reply was this>
"" Thank you for contacting Reverb Customer Experience --
I understand your concern about the update on tax reporting. The IRS has issued Notice 2023-10 which will delay implementing the 1099-K $600 reporting threshold for one year. This enactment will revert us back to the previous reporting threshold of $20,000 USD in sales and 200 or more transactions for 2022. If you don't reach this threshold then you will not be issued a Form 1099-K. You may visit the IRS website for more information here.
We are currently working on this so please be on the lookout for Reverb's official announcement regarding this soon."""""
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Post by the other mark williams on Dec 27, 2022 11:46:44 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits.
That’s ALL this means. It does not change what you or I or anyone else owes.
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ericn
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Posts: 16,107
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Post by ericn on Dec 27, 2022 11:56:49 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits. That’s ALL this means. It does not change what you or I or anyone else owes. Mark I was just telling my wife how I don’t miss having to file a stack of 1099’s! In the old days all the manufacturer incentive programs, anybody I did a gig for, I tell you it was a stack of 1099’s! |
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Post by the other mark williams on Dec 27, 2022 12:06:59 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits. That’s ALL this means. It does not change what you or I or anyone else owes. Mark I was just telling my wife how I don’t miss having to file a stack of 1099’s! In the old days all the manufacturer incentive programs, anybody I did a gig for, I tell you it was a stack of 1099’s! I hear you, Eric! This is actually the second year where we’re having to *issue* a few 1099s, and that is super annoying! We hired out a couple of editing jobs after we had filmed an event, and it crossed the reporting threshold. Katrina also pays an office assistant to do certain tasks for the business, and we crossed the reporting threshold for her, too. These things are annoying, but they’re just part of the cost of doing business. |
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Post by seawell on Dec 27, 2022 13:27:38 GMT -6
Edited: actually never mind, I’m chilling at least until the new year 🤣 .…peace Mark ✌🏻 Amen, Josh! We all need a break from the madness, man. Happy holidays to the Triad! Thanks Mark! A much colder one here in the Triad(we got as low as 5 degrees 🥶) as I'm sure you know, but it has been a great one! I hope it has been a great one for you and your loved ones as well. I'd still love to meet up in person one of these days and talk shop. |
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Post by soundintheround on Dec 27, 2022 23:14:34 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits. That’s ALL this means. It does not change what you or I or anyone else owes. Yeh but i think a majority of the people out there are not making any profits from this gig. I bet for most this is a bit of a money pit. If push comes to shove, I can prove to the IRS that I’m not benefiting any financial gains from this hobby. Thankfully with the new announcement, i dont have to go through all this paperwork in 2022. Every year, for the past 15+ years, i have put more money into this hobby than i have taken out. Thats almost a guarantee. Lol. The day that changes and the money start rolling in, or they require receipts/etc beyond this $600 rule, i guess ill change the way i file it all. |
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Post by the other mark williams on Dec 28, 2022 1:40:08 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits. That’s ALL this means. It does not change what you or I or anyone else owes. Yeh but i think a majority of the people out there are not making any profits from this gig. I bet for most this is a bit of a money pit. If push comes to shove, I can prove to the IRS that I’m not benefiting any financial gains from this hobby. Thankfully with the new announcement, i dont have to go through all this paperwork in 2022. Every year, for the past 15+ years, i have put more money into this hobby than i have taken out. Thats almost a guarantee. Lol. The day that changes and the money start rolling in, or they require receipts/etc beyond this $600 rule, i guess ill change the way i file it all. If you lose money on this every year, then it is not a business. It is indeed a hobby. Now, the IRS can (and does) still tax income earned from a hobby, so you’ve still got that to deal with, regardless. |
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ericn
Temp
Balance Engineer
Posts: 16,107
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Post by ericn on Dec 28, 2022 7:19:01 GMT -6
I just want to point out that this *doesn’t* mean we don’t have to pay the tax, everyone. It *only* means Reverb, eBay, etc. doesn’t have to report gross sales (by issuing a 1099-K) until the old limits are reached, rather than the new limits. That’s ALL this means. It does not change what you or I or anyone else owes. Yeh but i think a majority of the people out there are not making any profits from this gig. I bet for most this is a bit of a money pit. If push comes to shove, I can prove to the IRS that I’m not benefiting any financial gains from this hobby. Thankfully with the new announcement, i dont have to go through all this paperwork in 2022. Every year, for the past 15+ years, i have put more money into this hobby than i have taken out. Thats almost a guarantee. Lol. The day that changes and the money start rolling in, or they require receipts/etc beyond this $600 rule, i guess ill change the way i file it all. Keep receipts and find a good accountant, it’s going to be on you to prove these payments are not income. Now it’s going to be fun to see how delayed the IRS is going to be next year with all this additional paperwork. |
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Post by teejay on Jan 12, 2023 15:43:47 GMT -6
We owe it all to Reverb!
Dear Reverber,
We’re happy to share that the IRS announced a one-year delay of the federal $600 tax reporting threshold. This means that you will only receive a Form 1099-K for 2022 sales if you:
Exceeded the previous federal threshold of $20,000 in sales and 200 transactions, or Live in a state with a lower reporting threshold. Thank you for helping us advocate for change
This delay was the result of advocacy by Reverb and other leading online marketplaces, who launched The Coalition for 1099-K Fairness last year. With your help, we spent 2022 advocating for Congress to raise the $600 reporting threshold. More than a thousand Reverb sellers shared their stories about the benefits of reselling used gear on Reverb—and those stories helped policymakers see how this reporting threshold disproportionately burdens casual sellers.
While you’ll still need to provide your tax info if you reach $600 in sales in 2023, we’re hopeful that this delay is the first step toward a permanent solution. We’re continuing to advocate on behalf of the Reverb community and will keep you updated with the news and how you can help along the way.
Thanks,
The Reverb team
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