Cash should be re-throned.
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Then the government subsidizes your operations AND you can keep ungodly amounts of cash around to buy potential competitors!
Even the bucket shoppy exchanges also report to the IRS to avoid getting rekt, and I don’t think most naïve speculators understand how taxes are managed for securities transactions.
I can’t wait for every NFT wash trader to pay full taxes on the first sales of their ugly-ass procedurally generated jpegs
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Yeah i don’t understand. How can they know where, when, and for what dollar amount you got the gear you’re selling, and thus how much you’re netting on a sale? I’ve been collecting gear since I was 10., so do they need receipts from 20 years ago? Seems like what someone else mentioned, you’ve got to sell a lot and have a strong paper trail of your inventory, for it to be worth their while to go after you on this
where did you find this link/form.
ive done well over the threshold on both reverb and ebay (which means paypal as well) have have not received anything
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Check your spam or get in touch with Reverb. I got a link to fill out part of the form ages ago.
I think part of the reason I got one was because my state had revised the threshold? Can’t recall.
no emails or anything, but after extinsive digging there a little link on my billing page, which I never would have seen if i didnt go hunting for it. ty for the heads up that you actually got something.
doesnt really matter to me as i report it all anyway as it reduces my tax burden
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Glad you found it.
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cat in the first video mentions craigslist but didn’t say anything else about them, how does this affect craigslist, whenever I’ve purchased something off craigslist it’s always been in cash and no personal information exchanged?
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cat in the first video mentions craigslist but didn’t say anything else about them, how does this affect craigslist, whenever I’ve purchased something off craigslist it’s always been in cash and no personal information exchanged?
It affects so much as you use Venmo/Cash app/Paypal goods and services.
Otherwise Craigslist has absolutely nothing to do with your choice of transaction method.
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Yeah, in the US you are still responsible for the taxes for profits made selling on Craigslist. It’s just that CL doesn’t know how much money changed hands so they don’t 1099 you. You may still get 1099ed though depending how you transfer the money.
You still owe the tax on the profit ( minus cost ) regardless.
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Yes, the only change is that vendors who collect taxes on sales and peer to peer payments apps will be reporting data now. Income tax is still income tax 
Sure would be nice if our income tax prep companies didn’t also lobby congress to make things more difficult and regressive.
This is now coming to Canada. As of July 1st, you have to have an HST/GST number registered with Reverb. I won’t be using them anymore. I’m just a guy selling a few used pieces here and there. I won’t be registering a tax number as I’m not a business. Hoping the few pieces I have posted there sell in the next 5 days >.<
No bother for me. I don’t sell for profit. I sell items I no longer need so I can buy things I think I need.
Tax man doesn’t care: as long as you sold for more than you bought, that’s a profit. And if you can’t prove that you paid more than you sold? Tax man will assume you got it for free and the entire sale price is profit. Gotta love the tax man!
(To be fair, I do love a reasonable tax policy - cities and infrastructure cost money and someone has to pay for them)
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Yeah, debating Reverb again but i have a question, are you expected to pay for “profit” on any sale or in aggregate? I lose money because I don’t focus on “maximizing profits”, loss by time spent waiting for the right price ratio and time i’ve “rented” the device.
Maybe i can also try local Facebook music gear listings.
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As long as you can prove you purchased the said device you sold online and didn’t make a crazy profit your all good. Unless you go over $600 in profit (US) it doesn’t matter.
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US specific: Reverb should just be reporting a transaction to the IRS. It is your responsibility as a tax payer to itemize your transactions and show that you sold, say, an A4 for $600 but paid $1200 for it nine years ago. That would be a net loss, so you wouldn’t owe any capital gains tax. Also, at the Federal level, there is a different ordinary income rate and a lower capital gains rate. And a lower still long term capital gains rate that usually kicks in if you hold inventory for longer than 12 months. Some states have capital gains tax rates, others like California treat all income as ordinary income, and will insist on a piece of the action if any leg of the transaction occurred while you were a resident.
If you are doing more than $5k of transactions a year, a local CPA (accountant) should be able to help you understand the relevant accounting and file your taxes properly. You may even save some money. Under $5k you may be OK just winging it and eating any penalties the IRS assess on you. (The IRS has pretty good documentation on their policies, so if you insist on DIYing, check out what they have online. But if you are new to this, engaging a professional is fairly inexpensive and massively stress reducing.)
Canadians and other international folks should definitely check with the relevant local expert.
I’m neither an accountant nor a lawyer and the above is certainly not tax advice / guidance. I also work salaried corporate jobs or start money-losing startups, and don’t own any real estate, so my taxes are dead simple. Unless I start selling synths. 
Glass half full: if you owe the tax man money, it was because you were making money. Unfortunately, it’s possible to lose money but look like you are making money, so don’t put off learning about basic accounting and tax obligations until the day before filing is due. In the US, you can file for extensions if you need them.
Also, this.
Off topic: if you played around with crypto, you are probably super f’d. Talk to your accountant about declaring bankruptcy - and next time wrap your speculative activities in an LLC or other entity.
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I searched this thread for the word gift and didn’t see it, so I wonder if the tax obligation changes if two people involved in a vendorless exchange using a transaction service choose to document the financial part of the exchange as such. Obviously, that wouldn’t work for a vendor dealing in suspiciously frequent exchanges, but I wonder if it might work for an occasional seller.
I’m thinking of the person on this forum who tires of an instrument and posts about it here, or has to economize by selling one item in order to buy another.
With PayPal, Friends&Family transactions are not reported, which are considered “gifts”. Also any gear trade (local or otherwise) does not need to be reported.
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Right, but by exchange, I meant the transaction first and the seller/buyer interaction second, not a literal exchange/trading of equipment, which would require no monetary transaction, right?
My question was really: Will other transaction services and Paypal’s current policies about gifts change under the current law?