Reverb 1099 Question

[Butcher of Strats]

After running numbers and looking at it from all angles for me it would be better to sell for a bigger discount on facebook marketplace and craigslist, I'd actually be coming out ahead vs paying Reverb fees then possibly taxes on top of that.

Plus the fact that managed online gear sales have all the buyer protections which easily screw the seller on returning guitars and amps after some fool breaks it or mods it or leaves it out in the rain etc etc etc.

Here it is, try it out and buy it or do not buy it.
Or my preference which is leave it with people I know running independent guitar shops and let them sell it for a cut.

Buying online used gear I like well enough because of the buyer protections that make me NOT want to sell gear that way.

 

[Stratafied]

While I certainly have opinions on good spending and bad spending and even meaningless spending, like my town hall does not need to move into a bigger more modern building or the army does not need those new tech flammable personnel transport vehicles.

But every one of the things I think are dumb, are supported by others who think MY choices are dumb.

When my house is on fire or my car gets stolen or some army decides to invade, I am glad there are paid people ready to step in.

I can think of better ways to spend my time than criticizing how other people spend their time.
Aside from my civic responsibilities to participate in civic duties.
Which while frustrating, is kind of a luxury than many humans WISH THEY HAD!

You should look further into govt spending. And how wasteful some of it is, I don’t question for one minute make sense spending. And I have always supported our fine police and firefighters. I think you misunderstood my statement.

 

[Butcher of Strats]

Isn’t GAS subsidized?

OK thats it I am moving to Canada if you got GAS subsidies!
Here we just got gas tax and potholes the size of a house!

 

[Butcher of Strats]

You should look further into govt spending. And how wasteful some of it is, I don’t question for one minute make sense spending. And I have always supported our fine police and firefighters. I think you misunderstood my statement.

No I get what you mean and have read various things about wasteful spending.
Overall my sense is that wasteful spending falls into two categories:

One category is over dramatized oft repeated examples of really dumb mistakes made by purchasing agents in offices who essentially "buy online" and do not check the merch vs price well enough. Not that far off from us GAS afflicted buying over and over then having to resell because what we hoped for was not in fact true.
I mean really, if guvspend was like our GAS and they kept buying the same stuff and over and over? Then complaining returning and reselling on Reverb? We would be calling "them" out!

New drapes for the office and such gets lots of press.
Hammers and toilet seats, big news.
Those aluminum bodied personnel transports were a huge legit bad move when the things proved higly flammable and troops got burned up.

The larger category is just opinions on what we think is legit and how much we think should be paid or how often it should be replaced etc. Similarly many pound their fists saying nothing should be regulated but then our son or daughter gets leukemia from job related chemical exposure etc etc and we may reconsider.
Too many offices trying to keep our kids from being poisoned, or killed in defective baby seats?
The question is for all who point the finger, have we done a better job managing such a huge complex nation?

For all the poor performances that are so pop to point out, overall we have it pretty good in the good ol USA!
Meanwhile it is kind of our civic duty to pay attention and participate if things go too far north or south or cheap or spendy.

 

[dirocyn]

You should look further into govt spending. And how wasteful some of it is, I don’t question for one minute make sense spending. And I have always supported our fine police and firefighters. I think you misunderstood my statement.

Reasonable minds can (and do) differ about what's reasonable for governments to spend. Most of us can point to a few things we agree with, as well as a few things we would prefer our governments not do. For example, I benefit from having schools to educate our youth, roads to drive on, and courts to resolve our disputes. My taxes help pay for these things, and that doesn't bother me. And at the same time, our governments do stuff I think is stupid, wasteful, and dangerous--and that does bother me. Everyone feels the same way, we just don't all agree on which things are wise and which things are foolish. We don't all share the same priorities--and in a negotiated budget each side will get some of what they want and some of what they don't.

 

[Scott Baxendale]

FWIW I love weird and feel creepy around normal folks at anything deeper than a casual level.

Yo play music for a net loss?
What is WRONG with you?
You value self expression over corporate income?
What is WRONG with you?
You have HOW MANY guitars?
OMG what is WRONG with you???

I never said I didn’t like weird. I was making an observation from my experience. My oldest daughter sells her stuff there.

Ive made money with my music, I’ll be retiring at the end of this year and I did ok for being a self employed guitar maker/player for most of my life.

I think Etsy might be a corporation too,

I do have more guitars than I need, but I will be liquidating a lot of those soon.

My guitar collection has been my 401k plan. About 20 years ago I started buying any used guitar that I could buy for less than what it was worth that day and had the potential to increase its value or at least hold it s value. In my business there are no traditional benefits such as retirement, health care, paid leave, sick days, etc. So I bought used guitars instead to pile them up so I could sell them when I was ready to retire. I have about 15 instruments that I use and play regularly. Several of those are speciality guitars such as a lap steel, or mandolin, or baritone etc. these only get used in the studio and I have 5 guitars that I gig with.

What is wrong with me? I make some dumb comments that have zero meaning to rile up thinned skinned dudes for my own entertainment I guess? ……I dunno.lol.

 

[Eric_G]

At the time, I would have had to donate a minimum of $500 in order to itemize it. For several years before that, while I was amassing my tools, I was able to use the money spent on them to offset that kind of thing but by that time, I was already established and only buying a couple hundred dollars a year.
Plus, at the time, I was even less knowledgeable than I still am now about the ever changing tax laws and the guy that had helped me previously, for free I will add, had cut ties with me...he was my ex-girlfriend's dad. He was a master at knowing what could be legally done and what couldn't.

Oh well I got you wrong then, I understood that the "late revenue" pushed you over the next salary bracket by 6$...

Here if that was to happen, a simple donation of 20$ give you a salary exemption of 10$ (50% of all donation are tax deductible) which would bring back to taxable revenue to the previous bracket... Unless I got this all wrong... I'm not a tax specialist... I gotta guy for that !

 

[Eric_G]

Just to clarify this and a similar few posts here:

Gaining income and rising into a higher tax bracket only means that income over the last tax bracket is taxed at the higher rate. It does not mean income that was taxed at the lower rate is now subject to the higher rate.

Simple example with phony numbers:
You have $50K in earned income. Your tax rate is 15%. Assuming you pay that actual rate (i.e. ignoring deductions, etc for simplicity), you'd pay 15% of $50K or $7500.

You get a raise to $60K. The tax rate about $50K is 20%. You'd pay 15% of $50K or $7500 plus 20% of the money over $50K, or 20% of $10K, for a total tax bill of $7500 + $2000 or $9500 total.

You would NOT pay 20% of $60K or $12,000.

The one caveat is that certain credits might not be available to you that have a hard limit i.e. "Only people who make less than $50K are eligible for the "2021 tax creit for people with GAS". Some of those things might go away.

OK but is the tax bracket calculated before deduction or after ?

ie: 60K$ revenue, 10K$ eligible donation deductions = Net Revenue 50K there fore no added 20% over the 10K$ ? so tax=15% of 50K only

Or is it:

15% of 50K for 7500$, then 20% of 10K for 2000$, then 9500$ of tax - 10K of eligible donation, they own you 500$ ?

Now I remember why I have a guy

 

[Believer7713]

Oh well I got you wrong then, I understood that the "late revenue" pushed you over the next salary bracket by 6$...

Here if that was to happen, a simple donation of 20$ give you a salary exemption of 10$ (50% of all donation are tax deductible) which would bring back to taxable revenue to the previous bracket... Unless I got this all wrong... I'm not a tax specialist... I gotta guy for that !

At the time, you had to exceed a minimum standard deduction of several thousand in order for itemization to work in your favor. A few years ago, they changed the standard deduction to $25K. We donate a lot but can't afford that much...yet.

 

[rolandson]

Seems we are ass backwards here in the US in so many ways...

I look to other places and see people paying upwards of half their incomes in taxes...and they are happy!

They realized that it ain't what ya pay in taxes, it's what those taxes provide to you that makes it a plus or minus.

Equitable taxation is a good thing. Inequitable taxation is criminal and that's all I have to say about that.

God I am so glad spouse and I have an accountant.
I so hate this stuff.

 

[arct]

Since the regulations/forms have not yet been written, I'll go hypothetical. Envision something like this on the new tax form where you've report 1099 income from on-line sales:
------------------------
Enter 1099 amount:
Enter cost of sales:
Net proceeds:

Were these sales related to items purchased for personal use and then re-sold and not related to selling items for profit? If so, check this box and enter 0 on Form 1040 line 18 "profit from online sales".
----------------------

I, and quite a few other states, have been doing this for at least two years now, so the regulations/forms are in, have been. It is a 1099K. Income. Like what you get from PayPal or any other gig economy "job". It isn't about your online sales in any way, it is just income. The average person is not filing form 8949 or whatever that one is, and they aren't doing Capital Gains/Losses either, so it just goes into the income hole and becomes more. For nearly all of the people using Reverb.

Big sellers and businesses are already doing this stuff, so it is not anything to them and it wasn't aimed at them. It was aimed squarely at the guy selling stuff out of his basement.

rct

 

[Bowmap]

Can you not carry your losses forward?

If you make 50k this year do you not get it tax free?

That's how it works over here.

As regards the op. I have a gear fund that's in cash. I do all my buying and selling in cash. Not that I do much or make a profit.

When it comes to stocks it gets weird and I do not really understand it all. My CPA told me too ignore the portfolio value. It's all about the individual trades. Add mutual funds to the mix and all the other stuff it is easy to get lost. I do not do my own trading as I rely on a professional fiduiciary. It could have been worse. The whole thing is slowly edging back up.

 

[Stratafied]

 

[AntStrat]

And today the state hit me for $218 for my motorcycle registration renewal. My insurance is only $250-ish.

So eff them up their rectum with an unlubed hello kitty stand up bass if I'm giving them one penny of taxes for a musical instrument that I already paid tax on when I bought the damn thing.

I'm going rogue, underground and join the resistance.

 

[Johnnyg123]

Every woman I know selling their crafts on Etsy is weird af.

Wow! Every woman I know is crazy bout an automobile.

Sadly I've only got a rubber heel.

 

[Believer7713]

And today the state hit me for $218 for my motorcycle registration renewal. My insurance is only $250-ish.

So eff them up their rectum with an unlubed hello kitty stand up bass if I'm giving them one penny of taxes for a musical instrument that I already paid tax on when I bought the damn thing.

I'm going rogue, underground and join the resistance.

My bike tax due a couple weeks ago but it was only like $58 or something. Not much at all really. My new driver's license card will actually cost more when u get it next week.

 

[rolandson]

A true story:

Former spouse's, (yes, there is a former spouse in my past) father, a prosecuter with our local DA's office and champion of civil rights & anti war efforts of the 60's and 70's ran afoul of a former occupant of the white house (the one who resigned)...

Said former occupant did what he did best and sicked his friends from a division of the treasury department which has a three letter common name...

Suddenly, a man who hadn't earned more than $40k in any single year owed half a million in back taxes and penalties for stuff he knew nothing about.

But this alphabet service with treasury enjoys an advantage:

They have special rules that only apply to them.
They have their own courts.
They can refuse to be sued.
You are guilty unless they agree you have proven yourself inmocent.​

Former father-in-law gave up. The three letter guys were relentless. They had their orders and dad-in-law knew a lost cause when he saw one.

Late one night a semi truck pulled up in front of his house and many people came to help move the packed up belongings into the trailer.

And away they went.

To Costa Rica.

But the alphabet boys got the last laugh. They went after former father-in-law's former spouse (my former mother-in-law) Seems that while married they had filed a joint return. Alphabet boys decided that one was suspicious so they came knocking...pounding actually. When she said "bite me" they put her house on the market...ran an ad in the newspaper and everything.

We all scrambled to help put the money together to save her. But alphabet inc. wouldn't release their strangle hold until she ponied up the cost of the newspaper ad.

It was a year later that she had amassed the documentation to prove the claims were erroneous.

The alphabet boys said "bite me."

So she sued them.

They said "no, you will win so we won't let you."

And the alphabet boys all lived happily ever after.

The End.

Moral of the story boys and girls...
Do not f*k with the alphabet boys and girls.
You. Will. Lose.

 

[Butcher of Strats]

View attachment 647907
I never said I didn’t like weird. I was making an observation from my experience. My oldest daughter sells her stuff there.

Ive made money with my music, I’ll be retiring at the end of this year and I did ok for being a self employed guitar maker/player for most of my life.

I think Etsy might be a corporation too,

I do have more guitars than I need, but I will be liquidating a lot of those soon.

My guitar collection has been my 401k plan. About 20 years ago I started buying any used guitar that I could buy for less than what it was worth that day and had the potential to increase its value or at least hold it s value. In my business there are no traditional benefits such as retirement, health care, paid leave, sick days, etc. So I bought used guitars instead to pile them up so I could sell them when I was ready to retire. I have about 15 instruments hat I use and play regularly. Several of those are speciality guitars such as a lap steel, or mandolin, or baritone etc. these only get used in the studio and I have 5 guitars that I gig with.

What is wrong with me? I make some dumb comments that have zero meaning to rile up thinned skinned dudes for my own entertainment I guess? ……I dunno.lol.

I think you got that my "what is wrong with you" lines were what I presume squares would say to me if I was dating them or their daughter!
I was not asking you that question.

I have made a bit of money playing music and more money fixing guitars, but nowhere near what I spent.
Enjoy the hell out of it though!
Mostly.
Lately I question my own need for my gear assemblage.
Complicated because I have to pack it all up and more to some other state.

 

[Believer7713]

A true story:

Former spouse's, (yes, there is a former spouse in my past) father, a prosecuter with our local DA's office and champion of civil rights & anti war efforts of the 60's and 70's ran afoul of a former occupant of the white house (the one who resigned)...

Said former occupant did what he did best and sicked his friends from a division of the treasury department which has a three letter common name...

Suddenly, a man who hadn't earned more than $40k in any single year owed half a million in back taxes and penalties for stuff he knew nothing about.

But this alphabet service with treasury enjoys an advantage:

They have special rules that only apply to them.
They have their own courts.
They can refuse to be sued.
You are guilty unless they agree you have proven yourself inmocent.​

Former father-in-law gave up. The three letter guys were relentless. They had their orders and dad-in-law knew a lost cause when he saw one.

Late one night a semi truck pulled up in front of his house and many people came to help move the packed up belongings into the trailer.

And away they went.

To Costa Rica.

But the alphabet boys got the last laugh. They went after former father-in-law's former spouse (my former mother-in-law) Seems that while married they had filed a joint return. Alphabet boys decided that one was suspicious so they came knocking...pounding actually. When she said "bite me" they put her house on the market...ran an ad in the newspaper and everything.

We all scrambled to help put the money together to save her. But alphabet inc. wouldn't release their strangle hold until she ponied up the cost of the newspaper ad.

It was a year later that she had amassed the documentation to prove the claims were erroneous.

The alphabet boys said "bite me."

So she sued them.

They said "no, you will win so we won't let you."

And the alphabet boys all lived happily ever after.

The End.

Moral of the story boys and girls...
Do not f*k with the alphabet boys and girls.
You. Will. Lose.

I would give that a like but it rings to close to home. Back in the early eighties my dad had a business that he worked his tail off for. In order to get the business loan for it he needed a partner though so he signed with an already existing business owner in town. Then one day when the partner was out of town, he got a letter from the bank that the loan was in default. The next week, he got one from the same alphabet boys that he owed several years worth of taxes. He found out that the partner had embezzled the payments and bought a place out if the country.
Dad met with the bank and they knew he was straight so they were willing to finance him since he could show that he had profited for at least 5 years but the 3 letter guys told us to kick rocks since the property was worth more than he owed. They took our business made us almost lose our house and walked away without a second thought.
In the oh so eloquent words of @AntStrat, F them up their rectum with an unlubed hello kitty stand up bass!
Did we recover? Yes and we are all the better for it but watching my dad be torn down like that was rough, even at the young age I was then. Even rougher now that I really have an idea what he went through.

 

[AntStrat]

I would give that a like but it rings to close to home. Back in the early eighties my dad had a business that he worked his tail off for. In order to get the business loan for it he needed a partner though so he signed with an already existing business owner in town. Then one day when the partner was out of town, he got a letter from the bank that the loan was in default. The next week, he got one from the same alphabet boys that he owed several years worth of taxes. He found out that the partner had embezzled the payments and bought a place out if the country.
Dad met with the bank and they knew he was straight so they were willing to finance him since he could show that he had profited for at least 5 years but the 3 letter guys told us to kick rocks since the property was worth more than he owed. They took our business made us almost lose our house and walked away without a second thought.
In the oh so eloquent words of @AntStrat, F them up their rectum with an unlubed hello kitty stand up bass!
Did we recover? Yes and we are all the better for it but watching my dad be torn down like that was rough, even at the young age I was then. Even rougher now that I really have an idea what he went through.

That's tragic when a guy tries to make a life for his family by working hard and doing what's right only to get kicked when he's down. I hope your dad recovered from that.

And I can only hope the embezzler and the bankers met with a painful accident at some point in their lives.