How did I let it get so bad...

[OMB]

Why are so many folks stressing over a 1099 from Reverb and paying taxes?

Aren't the taxes on gains (profit) from the sale. I keep receipts or notes on all expenses associated with the purchase of a guitar. I purchased guitars for my personal enjoyment and never really made any money (after upgrades, set ups etc.) on most of the gear I sold. I guess all I am saying is after I deduct costs of upgrades to the original price of the guitar - how much is truly taxable?

Granted some folks have purchased to make money and if they do - well you would owe taxes.

I am not an doing work for eBay/Reverb/etc. Therefore should not be taxed on a sale of an item between private individuals

I don't buy/sell to make money, but if I do a huge sale of items, I am going to all of a sudden have this huge influx of supposed income that I now have to put a lot of effort into explaining because the government is misusing a piece of tax code enacted almost half a century ago when $600 was a big deal. Now it takes almost nothing to eclipse that mark.

I don't keep records of my purchases, especially Craigslist or other in-person deals. Also, I am going to have to have my wife see exactly how much I spent on gear since she does the taxes if I start getting 1099s left and right

Sent from my SM-G998U using Tapatalk

Yeah I didn't mean to come across as snarky but I doubt very few peeps will need to pay taxes but I have been wrong before. I am very anal so I keep all kinds of digital receipts. On the plus side you don't and that is much easier on one trying to minimize their digital footprint and reducing organizational efforts. But hey good luck on thinning the herd. It is a good feeling.

[nomadh]

Do you have to pay tax on gains of second hand gear in the USA?

In the UK it's only land or houses that attract a capital gains tax, other than savings and shares, obviously.

Secondhand guitars, watches, antiques - nothing to declare

If you exceed US$500 in a tax year you owe capital gains tax on your profits selling used gear.
As long as there is proof such as the previously mentioned 1099 form that Reverb is required to send you based on your sales thru them.

That's right. Because we all have the receipts for all the old guitars we bought 15 years ago. Plus the repairs. Oh, and remember to take part of your heating, ac and roofing repair costs to keep those guitars in good shape so you could make that "killing in the market" where you made $200.
This shit soooooo pisses me off. I grew up being bullied and shy and 1 day I woke up and said next guy that trys gets it. And it goes double for some prick that my taxes pays.
I've always figured that some day it's going to come down to me and some beaureocrat that's going to do something just "because he can" and he's going to find out "he cant". I've gone 40 years without having to pull the pin. I'm always more than reasonable but if someone wants to escalate you'll know they weren't good at reading the signs.
Someday if you hear about some irs agent getting stabbed 30 or 40 times through his eye sockets and then having his throat ripped out you'll all be able to say
"Hey! I know the guy that did that!"

[PsychoCid]

Do you have to pay tax on gains of second hand gear in the USA?

In the UK it's only land or houses that attract a capital gains tax, other than savings and shares, obviously.

Secondhand guitars, watches, antiques - nothing to declare

If you exceed US$500 in a tax year you owe capital gains tax on your profits selling used gear.
As long as there is proof such as the previously mentioned 1099 form that Reverb is required to send you based on your sales thru them.

That's right. Because we all have the receipts for all the old guitars we bought 15 years ago. Plus the repairs. Oh, and remember to take part of your heating, ac and roofing repair costs to keep those guitars in good shape so you could make that "killing in the market" where you made $200.
This shit soooooo pisses me off. I grew up being bullied and shy and 1 day I woke up and said next guy that trys gets it. And it goes double for some prick that my taxes pays.
I've always figured that some day it's going to come down to me and some beaureocrat that's going to do something just "because he can" and he's going to find out "he cant". I've gone 40 years without having to pull the pin. I'm always more than reasonable but if someone wants to escalate you'll know they weren't good at reading the signs.
Someday if you hear about some irs agent getting stabbed 30 or 40 times through his eye sockets and then having his throat ripped out you'll all be able to say
"Hey! I know the guy that did that!"

I'm with you bro.

That said, we lost the war in 1913.

Complaining over things that happened in the last five minutes won't get us anywhere.

But Russia and Canada teaching people how to use hard money like crypto instead of fiat money like USD, is the only thing that will save us.

It's always darkest before dawn. That means dawn is coming. Relax, get TF out of your USD investments, and THEN count the months, not minutes.

If you don't exit fiat money now, then the only person to hold accountable will be yourself.

[nomadh]

@PsychoCid well that's a mess as I just retired and my main money is a California state pension. Remember when that was considered "safe money"? My other money is an ira.. at least now I can start to get it out but if in big chunks tax will eat it alive. But if I leave it in inflation will eat it alive. Maybe just leave it in the market as actual companies will retain actual value. I'm into solid anayasis paralysis now.