Anybody Else Pulling Their Hair Out Over Taxes and This 1099-K Crap for Selling Used Gear?

[22 frets]

This just seems like it is nuts! I sold a piece of gear last year on Reverb and it exceeded the $600 threshold for third party 1099-K reporting. I received a 1099-K from Reverb and of course I had sold it for less than I originally paid for it. So no profit was make which is probably typical for most used equipment sales. If I understand correctly, I have to go through filling out an entire 2 page 1040 Schedule C with 20 pages of instructions to list a loss of income over selling one piece of used gear.

It sure seems like to me if the government insists on doing this they could at least have a simple provision for non-business sellers and hobbyists to simplify the process. By making it so complicated they are just encouraging people to bypass or ignore it. I have a degree in IT and business management and I can't hardly figure out how to do this. I can't imagine how non-business oriented people ever get through this stuff without hiring someone to help them with their taxes.

In addition to that, there is some kind of snafu with Turbo Tax that prevents you from filling out and linking to the on line Schedule C so you can't include the form in your electronic filing. I read that there is some sort of work around, so now I have to go research that and try to figure out if I am going to still be able to electronically file. What a hassle over selling one piece of gear!!

Just seems like the world (government) has gone crazy sometimes.

 

[Shredology]

There is absolutely no way I would do anything with that except file it in the trash bin. Cold day in Hell when I discuss used (at a loss) gear sales with the bullshit US government.

 

[FractalAudio]

We have far too much government. The extra tax proceeds they generate from this will simply go towards administration.

 

[Shredology]

We have far too much government. The extra tax proceeds they generate from this will simply go towards administration.

Absolutely. New paperwork pays for people to process said paperwork with no net revenue.

 

[Severed]

And I thought Canadia Revenue Agency was mafia.... they got nothing on you guys in the USA

 

[fcs101]

That's why I try FB Marketplace or Craig's List first.

 

[22 frets]

That's why I try FB Marketplace or Craig's List first.

Yeah. I didn't know I was setting myself up for this when I sold it last year. I will think long and hard about using Reverb again, that is for sure. I wouldn't be surprised though if the day is coming where they require this of all the on line sales platforms.

 

[fcs101]

Yeah. I didn't know I was setting myself up for this when I sold it last year. I will think long and hard about using Reverb again, that is for sure. I wouldn't be surprised though if the day is coming where they require this of all the on line sales platforms.

It also makes me mad to pay sales tax, when if I were purchasing locally, I wouldn't.

 

[lauke-lux]

We have far too much government. The extra tax proceeds they generate from this will simply go towards administration.

If it is like Europe : Too much on pennywise poundfoolish subjects, not enough on essential subjects concerning protection of public interest : (space, internet governance, commercial abuse of GAFFA, health insurance for the financial lesser blessed amongst our co-citizens....etc)

 

[jakel]

Thanks for posting this! I had no idea, and was planning to sell off my Axe8 soon. Looks like the price is $599! Or, I sell locally.

And don’t get me started on the US government.

Edit: I just looked up the Axe8 asking prices on Reverb. I don't think I'll be selling it for $599.

 

[Stewart]

So, most people are going to sell gear at a loss. And the amount of time you will spend documenting this loss will not be worth the amount you save when you include the loss in your itemized deductions. Which means the government is requiring you to to spend more time on your taxes to generate less revenue for them. Makes sense.

 

[Dave Merrill]

I just sold my Helix to GC a few weeks ago, which also exceeds that threshold. Do you suppose they'll send me a 1099? Kinda doubt it, but I bet there's some provision in their paperwork that it's my problem whatever happens.

 

[Dave Merrill]

Footnote, I had to file on paper for the last two years because reasons, filled on extension but on time.

Mailed with tracking on 9/28/21.
Got a text from postal service saying it arrived on 10/26/21. Post office said it'd be 5 days or so, not quite.

We still haven't gotten our refund. I detect a pattern. Grrr.

 

[Stewart]

Wow, from Reverb.com
https://help.reverb.com/hc/en-us/ar...-need-a-Form-1099-K-for-my-2021-Reverb-sales-

"It is important to fill out your information accurately and promptly, as failure to do so may require Reverb to withhold taxes from your future payouts to account for potential tax liabilities.

The Form 1099-K from Reverb reports the unadjusted gross sales you received through Reverb Payments during 2021 excluding only Marketplace Facilitator Taxes remitted by Reverb. This means that Reverb fees and any refunded orders do not reduce your total sales for the year. "

 

[Diego]

We have far too much government. The extra tax proceeds they generate from this will simply go towards administration.

Would you like to try the Italian bureaucracy?

 

[fcs101]

Thanks for posting this! I had no idea, and was planning to sell off my Axe8 soon. Looks like the price is $599! Or, I sell locally.

And don’t get me started on the US government.

Edit: I just looked up the Axe8 asking prices on Reverb. I don't think I'll be selling it for $599.

Looks like you can get quite a bit more from what I see.

 

[jakel]

Looks like you can get quite a bit more from what I see.

A couple months ago $650 was an aggressive, "sell it quickly" price. Seems that number has inflated a bit.

I've got an FM9 as my main, and an FM3 as a backup, so it may be good timing to sell the Axe8.

 

[bjjp2]

The IRS is in complete disarray. No surprise, typical for this current absolute failed administration. Also the IRS is hiring:

https://www.washingtonpost.com/business/2022/03/03/irs-tax-backlog-hiring/

The current rule is not new--you had to pay taxes on this income before. Yes, the new reporting requirement is a pain in the neck. But this isn't a real tax increase. A real tax increase was what happened under the last administration when they eliminated the deduction for all state and local taxes. That was a massive real dollar tax increase for hundreds of millions of Americans like me. And it was political retaliation against certain states so I guess that doesn't matter as much.

 

[stink]

There is absolutely no way I would do anything with that except file it in the trash bin. Cold day in Hell when I discuss used (at a loss) gear sales with the bullshit US government.

That's exactly what I did

 

[jakel]

Seems to me we should be all about maximizing efficiency and reducing overhead in all things, government included. Aren't we all better off in the long run that way? Paying people to essentially produce nothing is stupid. This is not a slam to hard working government employees!