- Mar 28, 2018
- Reaction score
- Ocean Springs, MS
Correct. He said it’s sales tax. Only the buyer pays sales tax and reverb collects it separately. The seller does not have sales tax deducted from their take.
You aren’t legally required to file the 1099 you receive for selling something you own at a loss. Reverb must give you a 1099 for going over your states threshold, or the federal threshold. Reverb does not know if it is income for you or not. (This is a tax law and not politics.)
Example; the federal threshold that requires reverb to give me a 1099 if I sell $20k of goods or 200 transactions in a calendar year. However, I live in Virginia and the state threshold is $600 in a calendar year. Now Reverb have to give me a 1099.
What concerns me, as I said, is that none of my sales were income as I sold my own stuff. But, I sold a lot of stuff. A lot of good stuff and I’m concerned that selling over $10k in stuff and not needing to file will trigger an audit because of that amount.
Maybe not… I dunno
Biden wants to hire 80,000 more IRS agents you better watch out....lol
My state is $600 now also. I talked to my tax guy and he said If i bought a $1000 drum and sold if for $800 it would be write off. If I bought a snare for $500 and sold it for $600 then it will be a gain. Maybe this will help us in the long run. I will now have to pay more to my tax guy cause he will probably have to fill out extra forms for this.