Selling a guitar

[rtcook]

I have a high end Gibson guitar I want to sell. I have been a big user of eBay and Reverb, but with the fees and now the taxes I refuse to sell on either. Craigslist doesn't seem to get the coverage as eBay and Reverb. Considering joining a Gibson or related forum, but sometimes you can't join just to sell unless you have enough posts. Where do you guys se your guitars?

 

[ruso]

I have a high end Gibson guitar I want to sell. I have been a big user of eBay and Reverb, but with the fees and now the taxes I refuse to sell on either. Craigslist doesn't seem to get the coverage as eBay and Reverb. Considering joining a Gibson or related forum, but sometimes you can't join just to sell unless you have enough posts. Where do you guys se your guitars?

I use Reverb and charge accordingly. As long as you know what your bottom line is, just add the estimated fees.

 

[rtcook]

I don't want to claim these sales on my taxes.

 

[la szum]

List it here. Lots of folks here love LPs.

 

[Michael R]

I had a similar thing happen just last week. I sold a Marshall amp on Ebay and then got the 1099-K/ need your SS# message.
I immediately cancelled the sale. Sorry to the buyer but ebay is not getting my SS#.
So, off to CL land...........

 

[rtcook]

Its a SG, not a LP.

 

[rtcook]

Exactly what I don't want to do.

I had a similar thing happen just last week. I sold a Marshall amp on Ebay and then got the 1099-K/ need your SS# message.
I immediately cancelled the sale. Sorry to the buyer but ebay is not getting my SS#.
So, off to CL land...........

 

[la szum]

I see you are in Ohio. I know a guy. PM me and maybe I can connect you two.

He buys, sells, trades high end guitars in the Midwest.

 

[Michael R]

I see you are in Ohio. I know a guy. PM me and maybe I can connect you two.

He buys, sells, trades high end guitars in the Midwest.

Does this same Ohio guy have any interest in a Marshall SV20H at a fair price?
....from Ohio as well.

 

[vika12]

The new tax regs suck, but you only owe tax on any gain you realize above your cost basis - you're not double taxed, as some out there on the Internet have suggested.

 

[Michael R]

The new tax regs suck, but you only owe tax on any gain you realize above your cost basis - you're not double taxed, as some out there on the Internet have suggested.

What if for example: I buy an amp for $600 from some crack head (not stolen) and the going rate is usually around $1000. I got a really good deal!
Then later I sell the amp for the going rate of $1000.
I'm not a business and I got a good deal.
So, I am now going to have to pay a "profit" tax because some crack head sold me something at a good price?
BS!

 

[la szum]

Technically speaking, that is a capital gain. So yes.

 

[Michael R]

Another example: My household bills this year due to inflation, are way more than they were last year........
can I claim this as a loss?

 

[vika12]

What if for example: I buy an amp for $600 from some crack head (not stolen) and the going rate is usually around $1000. I got a really good deal!
Then later I sell the amp for the going rate of $1000.
I'm not a business and I got a good deal.
So, I am now going to have to pay a "profit" tax because some crack head sold me something at a good price?
BS!

Tax would be on the gain (less any fees you'd pay to Ebay, Reverb, etc., shipping you ate, etc.). Would it be better if you had bought it from a non-crackhead at $1,000? You'd have paid another $400 to save maybe $75 in tax.

 

[Michael R]

Tax would be on the gain (less any fees you'd pay to Ebay, Reverb, etc., shipping you ate, etc.). Would it be better if you had bought it from a non-crackhead at $1,000? You'd have paid another $400 to save maybe $75 in tax.

Ok, then what if I buy the amp for $1000 then at a later date can only get $600 out of it....where do I report that loss?

 

[vika12]

Ok, then what if I buy the amp for $1000 then at a later date can only get $600 out of it....where do I report that loss?

That I don't know - that's a question for your accountant. Maybe you can claim a loss, maybe you can't.

 

[Michael R]

That I don't know - that's a question for your accountant. Maybe you can claim a loss, maybe you can't.

Exactly......probably not.....this is why we or I say it is double dipping theft by the cartel known as the IRS & govt.
I wonder if I can convince my employer to re-hire me as Michael R, LLC that way I can utilize my "business" deductions correctly.

 

[vika12]

Exactly......probably not.....this is why we or I say it is double dipping theft by the cartel known as the IRS & govt.
I wonder if I can convince my employer to re-hire me as Michael R, LLC that way I can utilize my "business" deductions correctly.

Yes, it sucks. It's forcing those who sell on Reverb, etc. to raise prices to offset tax or discourages sales altogether.
For what it's worth, Reverb says in its explanation of this issue that it (along with other third party marketers) are lobbying to have the $600 threshold raised.

 

[la szum]

Exactly......probably not.....this is why we or I say it is double dipping theft by the cartel known as the IRS & govt.
I wonder if I can convince my employer to re-hire me as Michael R, LLC that way I can utilize my "business" deductions correctly.

Technically speaking, it is not double-dipping. If you paid sales tax (or bought an item second hand and paid ZERO
sales tax) on it, and then sold it at a profit later, you don't pay a second sales tax when you sell it.

It's more like buying a stock. When, and if, that stock goes up in value over a few years, and you accrue a capital gain,
then you pay a tax on the capital gain from that stock..... not additional sales tax.

This is why the sale of valuable goods is codified under law as a "capital gain" and not written under law as a
sales tax.

 

[TSJMajesty]

Exactly......probably not.....this is why we or I say it is double dipping theft by the cartel known as the IRS & govt.
I wonder if I can convince my employer to re-hire me as Michael R, LLC that way I can utilize my "business" deductions correctly.

If it bothers you so much, then I suggest looking into legit ways to better yourself financially. My route was having a small business. You get tax breaks while increasing economic activity.