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To Reverb’s Credit, Fighting Congress

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Squirrel Man

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Well yeah, regardless of their credit - this is their industry. People are going to sell less statistically, they're losing money.

I'm not selling more than $600. I have one item listed now, if it sells at face value I'll be at $599.98 in sales. I kid you not.
 

jptrickster

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Well yeah they have the most to lose just think of the millions of forms and extra work/expense they have to incur then the sellers who are dropping like flies. Probably going to put them out of business. I’m going to start selling on Ebay of Cayman Isl.
 

DrumGuy27

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Its extremely upsetting as the IRS has no business saying this is "income" when at all times I lose tons, I mean sometimes a few hundred $'s when I sell my slightly used snares I bought just to try out - then I take a loss because of FeeBay or Reverb fees (which keep going up), then the IRS wants a cut, of $'s I got from selling at a major loss - madness...unless there are some details I don't know about, like can I deduct my $100's loss from the "income"?

Ultimately when selling my used gear, IRS therefore is charging me tax twice for the same item - not good.
 

bpaluzzi

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Its extremely upsetting as the IRS has no business saying this is "income" when at all times I lose tons, I mean sometimes a few hundred $'s when I sell my slightly used snares I bought just to try out - then I take a loss because of FeeBay or Reverb fees (which keep going up), then the IRS wants a cut, of $'s I got from selling at a major loss - madness...unless there are some details I don't know about, like can I deduct my $100's loss from the "income"?

Ultimately when selling my used gear, IRS therefore is charging me tax twice for the same item - not good.
If you're selling for a loss, you don't owe ANY tax on it.

If you're selling for a profit, you owe tax on the profit you made, just like any other income you've made.

Again, this has always been the case. It just was hard to enforce before the internet made it trivial to track.
 

DrumGuy27

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If you're selling for a loss, you don't owe ANY tax on it.

If you're selling for a profit, you owe tax on the profit you made, just like any other income you've made.

Again, this has always been the case. It just was hard to enforce before the internet made it trivial to track.

that sounds good but then how is this going to be reported to IRS by Reverb and feeblay? The IRS will just see I made, say, $6000 in 2022 selling drums - how will they know I lost $, maybe 25%-30% of that?
 

bpaluzzi

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that sounds good but then how is this going to be reported to IRS by Reverb and feeblay? The IRS will just see I made, say, $6000 in 2022 selling drums - how will they know I lost $, maybe 25%-30% of that?
You'll need to provide receipts showing what you originally paid.

Yeah let’s sock it to the musicians ! Next they’ll be taxing your tip bucket
Yes, you're supposed to pay taxes on that income. It's easy to cheat the system because it's cash, but that's technically taxable income and you should always have been reporting it.
 

jptrickster

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You'll need to provide receipts showing what you originally paid.


Yes, you're supposed to pay taxes on that income. It's easy to cheat the system because it's cash, but that's technically taxable income and you should always have been reporting it.
I’ve never had a tip bucket
 

bpaluzzi

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I’ve never had a tip bucket
Neither have I ;)

But if you're reporting substantial "legit" income in an area that is traditionally tipped (live music, bartending, wait staff, etc.), but have no tips on your return, you're opening yourselves up to a non-fun audit.

I get a 1099 for my wedding band with my base pay, and have been advised by my accountant that I need to realistically report tips, otherwise I'm opening myself up.
 

dustjacket

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They want filing for 15K+, sure I get it. It’s the attack on casual hobbyists that bugs me.
 

Rich K.

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Its extremely upsetting as the IRS has no business saying this is "income" when at all times I lose tons, I mean sometimes a few hundred $'s when I sell my slightly used snares I bought just to try out - then I take a loss because of FeeBay or Reverb fees (which keep going up), then the IRS wants a cut, of $'s I got from selling at a major loss - madness...unless there are some details I don't know about, like can I deduct my $100's loss from the "income"?

Ultimately when selling my used gear, IRS therefore is charging me tax twice for the same item - not good.
Pretty simple... just declare the purchases as expenses.
Not sure how you're getting taxed twice. Sales tax is a different issue.
If you're gigging and buying and selling gear, it's pretty easy to show a net of almost nothing taxable.
 

Rich K.

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If this is political, please advise and I'll delete.
Two possible solutions from a layman.
1. No income tax. National flat sales tax on all transactions, no exceptions.
2. No income tax. Tax assets rather than income.
 

mkelley

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I don't want to talk about what I make selling drums stuff online but I hit the $600 line fairly quickly. It's such a low bar snagging people into paying more federal and state taxes. Stopping donations to politicians seems to be a good way to make up for what I'm losing to the Feds.
 
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