The downward slide of Reverb?
- Thread starter carlinb17
- Start date
I’ve never really spent anytime on this site. I’m always looking for other avenues to sell besides Reverb. Is it a pretty good site for selling gear? I noticed there’s a fee required too.
carlinb17
Well-known member
It’s a great concept but it seems like it’s become too complicated… now on top of sellers fees and transaction fees the sales now go into your gross income for taxes? Does that mean I can write off bad BBDs, solder, electricity? No that’s what a company can do not someone who does it for a hobby… but that’s my opinion and everyone has one. I digress…
As an employer, if I pay a contractor less than 600, I don't have to report it/ fill out a 1099 for them. Seems like reverb is considering everyone that sells on their platform some kind of contractor. Blame the government on this one, as I can't believe they would voluntarily take on all the paperwork & reporting.
andare
Well-known member
It'sa not a broken. You need too ev good shoes froma Milano to use, capeesh?
Coda
Well-known member
I actually fixed it a month or so later. Ended up getting it for free.
thesmokingman
Paid Hater
I remember back when Reverb first started, they scoured the Internet for small builders and invited me to create a shop etc etc ... a deep dive into their terms and they were far worse than ebay/paypal ... I've used my shop a few times over the years but every single transaction was a matter of desperation selling something too unique for a local sale to be worth it
carlinb17
Well-known member
I don't blame reverb for it, if it's part of the new tax code who's going to fight that... The two definitive things in life are death and taxes. It will be interesting to see though how other sites like eBay and Etsy handle it because you're basically limited if not straight up discouraging anyone from selling items on their sight unless their already a company. It wouldn't affect a company selling items on reverb because they already handle this. I just liked selling a pedal here and there on reverb so I could buy more PCB's or put it towards something else.
Harry Klippton
Not Interested
It's not that hard to figure out what tax bracket you're in and if adding $600, or $1000, $2000 or whatever to your gross income makes that much of a difference. The only time it really matters is if your reverb sales would bump you up to a higher brakcet. Plenty of ways to use the tax code to adjust your taxable income come tax time too. The way I see it, this is just a little more annoying paperwork to do but not enough to make me stop selling stuff all together
benny_profane
Well-known member
Just want to clarify that if you 'get bumped to a higher bracket' that only means that the amount of money past that cut-off is taxed at the new rate. It doesn't mean that the entirety of your gross is taxed at that rate.
Edit: A lot of people spend a lot of time and energy to purposefully confuse this issue.
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carlinb17
Well-known member
tax bracket is only part of it wether it bumps you up or not isn't the problem, if your responsible for money as earned income then that amount is taxable at your current tax rate. So you are again paying. If reverb says to sold a guitar at 1,000 they consider that a 1,000 profit or so it seems. you are responsible for paying the income tax on that 1,000. Maybe I'm wrong in all this but it appears that they are trying to say your sales of new and or used items are taxable income.
spi
Well-known member
I'm pretty sure if you're selling personal items, then only the profit is taxable. So if you sold a 1000 guitar you bought for 900, you'd be liable for the 100.
I'm less sure how this works out if you're selling pedals as a hobby--you may have to keep your parts receipts to track the actual cost. Let the IRS sort through your list of 1c resistors.
I'm not a tax accountant so don't take any of my advice--but my wife is, and if you really have a legit question, I can ask her (although her area is corporate and international tax, not personal tax, so she doesn't know this stuff without having to research it).
I'm less sure how this works out if you're selling pedals as a hobby--you may have to keep your parts receipts to track the actual cost. Let the IRS sort through your list of 1c resistors.
I'm not a tax accountant so don't take any of my advice--but my wife is, and if you really have a legit question, I can ask her (although her area is corporate and international tax, not personal tax, so she doesn't know this stuff without having to research it).
benny_profane
Well-known member
You can subtract your cost basis when filing a 1040-C and should only be liable for net profits. Things change a bit when things are thought of as investments (i.e., fine art). Then the liability becomes a capital gain. But, those are taxed at a much lower rate than income.
