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what is the impact of selling with new tax law?

jb_abides

Well-known member
Joined
Apr 6, 2005
Messages
3,052
I sold a guitar a few weeks ago for $2000 on Reverb. They notified me that they are sending me a 10-99 form showing $2000 as income.

Also note when you purchase on Reverb, the transaction is saved and you are given the option to save it to your 'Reverb Collection' (and also upload everything you own tied to their item listing which tracks market value).

You can view this as a useful tool, or... something else entirely.
 

jwalker

Les Paul Forum Sponsor
Joined
Dec 10, 2004
Messages
2,581
Sales tax is charged by Reverb because you are selling on their market place and as such the volume of sales they do for each state requires they charge state sales tax. The 2017 Supreme Court Ruling of South Dakota vs. Wayfair Inc. requires sales tax charged if there is delivery of more that $100,000 in goods or services or 200 or more transactions conducted in a specific state. Below those those limits and you don't need to charge sales tax. But Reverb and Ebay do well above those numbers so they have to charge sales tax on all sales through their marketplace.
 
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Pat Boyack

Well-known member
Joined
Oct 19, 2011
Messages
4,414
Per above comments about IRS 'not going after little guys, so don't be troubled'... Respectfully, please be very careful giving advice to willfully violate tax law using your real name and place of business. Trust meme
I've spent plenty of time sending out my own 1099s to band members and I employed a CPA for a number of years. I'm also not very hard to find. Shit, I even use my real name in this forum.
 

J.D.

Well-known member
Joined
May 24, 2006
Messages
9,893
First off, nobody should be taking tax advice from an internet forum. 😂

Read the IRS publication for yourself. A 1099K is an income report. It will need to be acknowledged "somehow" in your tax filing, as, by law, the payment houses are reporting it to the IRS.

Best to follow the advice of your accountant.
 

sikoniko

Active member
Joined
Aug 28, 2012
Messages
674
Was this law lobbied by accountants? It would seem we are all going to need one now… I heard one shop owner saying this is going to pull a lot of individual sellers out of the marketplace and limit transactions to just businesses now, due to the complications now added. I can see that. Next year a lot of people are going to be surprised when they have to deal with this crap. I can see the trend lean that way… I’m clearly have second thoughts about selling…

I really think if they wanted to, they could make this easy…
 

Uncle Jesse

New member
Joined
May 9, 2022
Messages
1
My state had this law in effect for tax year 2021 and I didn't know it until tax time a few months back. I was able to use turbotax for small business to fill out the forms for cost of goods etc. It allowed me to write off expenses such as mileage to UPS, insurance policy, StewMac membership, books, strings, polishing cloths, etc. So even if you do make some sort of profit selling stuff it's fairly easy to offset it if you go through your past year's expenses.
 
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