Taxes for selling your gear

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clowndog

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You know, that's a popular thing to say.... but is it really true?

I would be willing to bet that I could list far more things that our tax dollars pay for that are important, useful and not at all a waste, compared to the list anyone can come up of wasteful things.

I'm not saying there isn't a certain amount of waste to be found - and that one's person waste could match another person's definition of essential. But it's a big country with lots of parts and pieces involved with keeping it functional, successful, safe and secure - both now and in the future. So when you break down just the broad essential categories of infrastructure, education, military, intelligence, law enforcement, citizen safety, social safety net, justice, research into all of their competent parts... we end up with a whole lot of parts pieces.

And as I'm sure as anyone who has had a need to deal with most any government program or department... none of them ever seem over-funded. In fact most seem to be working on the thinnest of budgets.

So I'm pretty sure I could rattle off 100 essential useful things our taxes pay for with no problem. Your statement implies that there would 1,000 wasteful things that go along with my 100. And yet, again I'd bet that most making this claim would have a hard time even coming up with 100 wasteful things, let alone 1,000.
Review all spending on one recent federal bill if you "Care" and see if you still feel there is not wasted spending in a major way !
 

Old PIT Guy

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I didn't start the fire you had it right in this post #
No, but you love throwing gas on it and then trying to walk it back.

edit: right on time in 49.
 
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JDA

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Or what Dweezil paid for a $12 1403 cymbal stand in 1965
when he got $134 for it in 2021

you know you're scraping the barrel then
 

JDA

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nice topic for DFO let's talk Drum (cymbals) and Music
 

712drummer

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Sorry. Even though I said have fun when I started the thread, I honestly thought this would be just good info for dfo members to know for 2022. Was not trying to stir up trouble.
 

dyland

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Sorry. Even though I said have fun when I started the thread, I honestly thought this would be just good info for dfo members to know for 2022. Was not trying to stir up trouble.
Don't be sorry. It IS good info. Anything on this board even politically adjacent tends to fly too close to the sun.
 

sixplymaple

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You know, that's a popular thing to say.... but is it really true?

I would be willing to bet that I could list far more things that our tax dollars pay for that are important, useful and not at all a waste, compared to the list anyone can come up of wasteful things.

I'm not saying there isn't a certain amount of waste to be found - and that one's person waste could match another person's definition of essential. But it's a big country with lots of parts and pieces involved with keeping it functional, successful, safe and secure - both now and in the future. So when you break down just the broad essential categories of infrastructure, education, military, intelligence, law enforcement, citizen safety, social safety net, justice, research into all of their competent parts... we end up with a whole lot of parts pieces.

And as I'm sure as anyone who has had a need to deal with most any government program or department... none of them ever seem over-funded. In fact most seem to be working on the thinnest of budgets.

So I'm pretty sure I could rattle off 100 essential useful things our taxes pay for with no problem. Your statement implies that there would 1,000 wasteful things that go along with my 100. And yet, again I'd bet that most making this claim would have a hard time even coming up with 100 wasteful things, let alone 1,000.
I’m not allowed to go into details, but I worked for the federal government doing contract work for 5+ years. I saw a $960,000 mistake get swept under the rug and get completely taken care of off the books. The federal government is definitely wasting our tax money. They don’t know how to manage any sort of business, have no culpability, and have workers that can’t get fired. To trust our government with any sort of spending that benefits We The People is a mistake. The super rich keep getting richer and everyone else keeps getting poorer while the cost of living gets higher. Our taxes don’t benefit us, they benefit those in charge and their buddies...
 

supershifter2

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In 2016 I traded a 2005 Vox AC30CC2X for a 1977 Fender Twin Reverb. The 1977 Fender was one of the last 100 watters made. Both amps were mint. I bought the Vox used about 10 years ago off CL and dont remember what I paid for it. The Fender came from the original owner along with the "original" 4 Fender 6L6 power tubes that he never used. The Fender also had the rare sought after aftermarket EV speakers. I sold the 6L6 tubes for $100 to a friend. I put a pair of Fender brand speakers in the Twin Reverb I had laying around and sold the pair of EV speakers for $200. I sold the Fender amp and due to the covid19 lockout I was only able to get $500 for it. All this was done over about a 4 year time period. I never planned on selling the VOX but when I found the 2005 "head version" for sale I bought it and didnt need the combo anymore. So how do taxes on this figure ?
 
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ARGuy

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In 2016 I traded a 2005 Vox AC30CC2X for a 1977 Fender Twin Reverb. The 1977 Fender was one of the last 100 watters made. Both amps were mint. I bought the Vox used about 10 years ago off CL and dont remember what I paid for it. The Fender came from the original owner along with the "original" 4 Fender 6L6 power tubes that he never used. The Fender also had the rare sought after aftermarket EV speakers. I sold the 6L6 tubes for $100 to a friend. I put a pair of Fender brand speakers in the Twin Reverb I had laying around and sold the pair of EV speakers for $200. I sold the Fender amp and due to the covid19 lockout I was only able to get $500 for it. All this was done over about a 4 year time period. I never planned on selling the VOX but when I found the 2005 "head version" for sale I bought it and didnt need the combo anymore. So how do taxes on this figure ?
I'm pretty sure that fits in the casual sales category, so not taxable since it would be hard to show a profit or loss.
 

Deafmoon

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I’m not allowed to go into details, but I worked for the federal government doing contract work for 5+ years. I saw a $960,000 mistake get swept under the rug and get completely taken care of off the books. The federal government is definitely wasting our tax money. They don’t know how to manage any sort of business, have no culpability, and have workers that can’t get fired. To trust our government with any sort of spending that benefits We The People is a mistake. The super rich keep getting richer and everyone else keeps getting poorer while the cost of living gets higher. Our taxes don’t benefit us, they benefit those in charge and their buddies...
But 81 Million people voted for More Government in our lives! Let’s just leave the conversation right there before they take these down.
 

2000dan2000

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As an aside to just arguing politics under a thinly veiled guise...

What is this going to do to the business models of marketplaces like eBay or Reverb, et al? No one wants to pay taxes on their online gear re-sales, regardless of your political stripe. So when the rubber hits the road, what are people going to do? In my opinion... sites like those suffer greatly and places like Facebook Marketplace / Craigslist / OfferUp will thrive on person to person, local, cash sales.
 

Deafmoon

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As an aside to just arguing politics under a thinly veiled guise...

What is this going to do to the business models of marketplaces like eBay or Reverb, et al? No one wants to pay taxes on their online gear re-sales, regardless of your political stripe. So when the rubber hits the road, what are people going to do? In my opinion... sites like those suffer greatly and places like Facebook Marketplace / Craigslist / OfferUp will thrive on person to person, local, cash sales.
Yes. But without the mass exposure you really are limited in your marketing. Craigs list is like driving by a house having a garage sale these days. My question is always, okay 18 people saw this listing up over the last month, why bother?
 

2000dan2000

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Yes. But without the mass exposure you really are limited in your marketing. Craigs list is like driving by a house having a garage sale these days. My question is always, okay 18 people saw this listing up over the last month, why bother?
Oh I totally agree with you... I guess the ‘why bother?’ will get answered by ‘because taxes’ for a lot of people and a lot of sales. And, if more and more people think that way, then those locals only sites see an increase in traffic as a result and...

I just can’t see how this is going to be at all good for those online marketplaces. At least in the short term.
 

supershifter2

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Good ole BOA and Steppenwolf sing a P song. Tommy is drumming for BOA. Larry Byrom(Steppenwolf) is playing a ES335 plugged straight into a blackface Fender Dual Showman Reverb for that nice clean geetarzan tone.























PS ! For a minute there it sounded like Steppenwolf was gonna go into a hippo stomp
 

bigbonzo

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Yes. But without the mass exposure you really are limited in your marketing. Craigs list is like driving by a house having a garage sale these days. My question is always, okay 18 people saw this listing up over the last month, why bother?
Perhaps sales on these sites will increase because of the tax increase.
 

Whitten

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Most nations tax income from gear sales - just saying.
D C Crigger is right in every regard as far as I'm concerned.
As a self employed person I have an accountant prepare my tax return every year. I ALWAYS have to declare gear purchases and gear sales. I can claim a tax deduction for gear purchases. Likewise, if bought a vintage cymbal for $100 and sold it a couple of years later for $500, I have to declare it. I'm sure inflation, wear and tear etc are all taken into account.
There are lots of amateur traders on Ebay, Reverb, forum classifieds. It's only fair that if you buy gear at a lower price than you sell it on, you pay tax on that income. It's been this way since I started work as an adult (1979) and I'm sure long before that.
 

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But 81 Million people voted for More Government in our lives! Let’s just leave the conversation right there before they take these down.
I'm not going to claim immunity from the urge to get in a political shot because I'm most certainly not. But here's the thing. When you don't resist the urge, just like in this post, it makes it harder for the other guy not to get his shot in. Whether or not someone else has already gone full metal dumbass and fired off a round is irrelevant to anyone else's personal accountability. I guess what I'm saying is don't be that guy. Because when you are, it taints everything else you post to the point I don't want to see it. And worse, if no one hits the Report button on the stuff, it festers like an open wound and becomes a record of who's a bum. And with that I'm deleting my posts in this thread and hanging somewhere else for awhile because I don't have the patience or inclination to deal with old guy's immaturity.
 

dcrigger

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Oh I totally agree with you... I guess the ‘why bother?’ will get answered by ‘because taxes’ for a lot of people and a lot of sales. And, if more and more people think that way, then those locals only sites see an increase in traffic as a result and...

I just can’t see how this is going to be at all good for those online marketplaces. At least in the short term.
Being good for them really isn't the point. The fact is these marketplaces have opened a huge new retail space - open to everyone. "Selling on Ebay" is very much a part of the gig economy. And for small players to be able to undercut traditional retailers. The mom and pop music store selling in part on Ebay can't just ignore its profits come tax times - yet the small-time "gig economy" Ebayer should be able to sell willy nilly with no tax concerns - thus being able to undercut proper businesses at every turn???? (If you don't have to pay tax on your profits, then coming in with the lowest price is a whole lot easier).

But once again, this tax liability has always been there - the IRS has never recognized "profits from a hobby" as being tax free. Buy a drum for $50 and later sell it - that was always considered taxable revenue. And was supposed to be reported.

Trust me - at any time in the past, if a hobbyist buyer/seller was audited after having deposited his hobby money in the bank - and it was enough for the auditor to notice - there would be something like this discussion...

"So what's the story with these deposits"

"Oh those are my drum sales.... it's my hobby, I pretty much break even with it"

"Yes, but I see $1800 in deposits"

"Yes, but like I said, I barely broke even on those sales"

"What we have in front of us though is $1800 in undeclared revenue - if you are saying there are legitimate expenses to credit against that revenue, then now would be the time to produce it. Actually it should've all been included on your return. So do you have records of having purchased these drums or any other documents that would be considered a legitimate deduction against this undeclared income???"

"No - not really"

"Well then that means that this $1800 in undeclared income - which will now be subject to tax and late penalties"

This conversation has been happening between the IRS and hobbyist our entire lives - doesn't matter if the transactions happened on Ebay, Craig's List, a swap meet, a grocery store parking lot.... all revenue must be reported and all revenue is subject to tax...

There's no new tax stuff in these policies - just new policies reflecting how easy it is now for the IRS to track money that comes your way.

Again - the only way around this is as it has ever been. Cash transactions that create absolutely 100% zero paper trail - no deposits, no digital transactions - just cash, that the seller keeps as spends as cash in ways the IRS can't track. For example buying all one's groceries with this cash would be hard to explain in an audit.

Nothing's changed - these these taxes have always been due - from the first dollar - it's just that little stuff used to be so much harder to track... now, it's not.
 
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