How did I let it get so bad...

[honyock]

I am struggling with a decision.

Too many guitars, no need to sell them other than they take up space and I want to spend what little free time I have playing instead of tripping over gear. I have too many that I have no interest in keeping long term and would rather get down to a core of my nice stuff and the few cheap hidden gems like my SX ash Tele.

I have no desire to deal with Craigslist/Facebook marketplace flakes and weirdos. Especially if I am selling as many as I think I need to.

I am not interested in Reverb anymore with the new 1099 rules since I don't like the way inflation has hit the used market. I could probably make out great selling most, but the cost of everything is severely inflated so the risk of getting taxed/audited on those fake gains is not worth the effort.

I should have sold more last year when I saw the writing on the wall with the COVID relief bill sneaking the tax change through.

Those that have sold a bunch of gear, did you just rip the band-aid off and post it all at same time, or did you just do one at a time until it was all gone so you could avoid overload.

[UrenragK]

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

[mickey]

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.

[UrenragK]

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.

COME TO ENGLAND!

[mickey]

Been there for about 3 years. It felt tiny & overpopulated, and that was 50 years ago. We moved back here in 1972.

[UrenragK]

Been there for about 3 years. It felt tiny & overpopulated, and that was 50 years ago. We moved back here in 1972.

I was born in 1972 - it's not got any better

In fairness, there are places you can go where there is space, but then work is an issue. . . .

[howardlo65]

I am struggling with a decision.

Too many guitars, no need to sell them other than they take up space and I want to spend what little free time I have playing instead of tripping over gear. I have too many that I have no interest in keeping long term and would rather get down to a core of my nice stuff and the few cheap hidden gems like my SX ash Tele.

I have no desire to deal with Craigslist/Facebook marketplace flakes and weirdos. Especially if I am selling as many as I think I need to.

I am not interested in Reverb anymore with the new 1099 rules since I don't like the way inflation has hit the used market. I could probably make out great selling most, but the cost of everything is severely inflated so the risk of getting taxed/audited on those fake gains is not worth the effort.

I should have sold more last year when I saw the writing on the wall with the COVID relief bill sneaking the tax change through.

Those that have sold a bunch of gear, did you just rip the band-aid off and post it all at same time, or did you just do one at a time until it was all gone so you could avoid overload.

I found myself in the same situation this past fall. Didn’t want to deal with selling on CL, etc. didn’t want to have to pack up and ship with shipping being so high. Pawn shops and GC pay very little.

Decided I would feel better just giving them away. Gave away 4 acoustics, 8 electrics, a bass, 2 amps and fiddle in about two weeks time. Most went to a couple of my sons and one grandson that play, a couple to a friend and neighbor and an electric and amp to the 15 year old son of one of my wife’s friends. He lost his father last year and has health problems himself and wanted to learn to play.

No regrets at all and it feels so good to have thinned the herd. A lot more room and a lot less guilt of guitars that I felt should get played but didn’t. Feel much less like a hoarder.

[Rollin Hand]

Will eBay be doing the same thing with the 1099 forms? If so, you might have to decide what bothers you more: capital gains tax or flakes and weirdos. And boy howdy, that's a loaded question.

[PsychoCid]

Sadly guillotines are the only thing that fix (delay) tyranny historically.

Meanwhile...yeesh, what a situation. Reverb will screw you for sure.

Wonder if people will start listing items on CL/FB as FREE garage sale items, donations requested only.

I wish there was a quick fix. But we really need to take control of our systems again.

This is why alternatives to mainstream social are up and growing. Gab, Telegram, Truth Social.

[Partscaster]

I use a consignment deal at a local music store that is happy to sell that way.
I sell a handfull per year, and at a loss generally. I dont deal with any potential buyers...I drop it off, they eventually send me a check.
I am happy to let my guitar work time go for nothing, as I learned from it, And, I am happy to loose some money on actual cost, as I consider it the expense for the opportunity to try various guitars out. I might get 2/3rds of my money back out, and call it good enough.

Out of curiosity, does the govt. figure for inflation when they calculate a citizen's sale profit?

[PsychoCid]

I use a consignment deal at a local music store that is happy to sell that way.
I sell a handfull per year, and at a loss generally. I dont deal with any potential buyers...I drop it off, they eventually send me a check.
I am happy to let my guitar work time go for nothing, as I learned from it, And, I am happy to loose some money on actual cost, as I consider it the expense for the opportunity to try various guitars out. I might get 2/3rds of my money back out, and call it good enough.

Out of curiosity, does the govt. figure for inflation when they calculate a citizen's sale profit?

If by "figure" you mean they _planned to tax you for that inflation, then yes.

[slowhand84]

I am struggling with a decision.

Too many guitars, no need to sell them other than they take up space and I want to spend what little free time I have playing instead of tripping over gear. I have too many that I have no interest in keeping long term and would rather get down to a core of my nice stuff and the few cheap hidden gems like my SX ash Tele.

I have no desire to deal with Craigslist/Facebook marketplace flakes and weirdos. Especially if I am selling as many as I think I need to.

I am not interested in Reverb anymore with the new 1099 rules since I don't like the way inflation has hit the used market. I could probably make out great selling most, but the cost of everything is severely inflated so the risk of getting taxed/audited on those fake gains is not worth the effort.

I should have sold more last year when I saw the writing on the wall with the COVID relief bill sneaking the tax change through.

Those that have sold a bunch of gear, did you just rip the band-aid off and post it all at same time, or did you just do one at a time until it was all gone so you could avoid overload.

I've been posting a bunch at a time, I have way too many guitars right now (but of course am still buying more because GAS is an illness with no cure)...so I post 3-4 for sale at a time, get 'em sold, then post 3-4 more.

The Craigslist weirdos are definitely annoying, but there are ways to minimize the frustration. I don't reply to lowballers, I only meet a 5 min walk from my front door so I can always easily walk in case of any BS, I don't answer emails with 12 questions, etc. Things tend to go pretty smoothly.

[PsychoCid]

Man... I've sold dozens of guitars on craigslist

It's been three years now but...I never had a single issue with any buyer ever.

How do you guys manage to attract these weirdos? Why isn't it just, heres the guitar, here's the price, meet me here if you want to look at it, but you won't get to see or touch it til you show me the cash?

[mozz]

" I don't answer emails with 12 questions, etc."

If i ask for specific pictures i expect the seller to oblige. Nice sharp clear pictures, i doubt most any phone these days takes crappy pictures but i still see some. If i have questions and they don't answer I won't buy from them. If i say i will be there today at 430pm i will be there. If i don't mention price you can expect i will pay your asking price.

[slowhand84]

" I don't answer emails with 12 questions, etc."

If i ask for specific pictures i expect the seller to oblige. Nice sharp clear pictures, i doubt most any phone these days takes crappy pictures but i still see some. If i have questions and they don't answer I won't buy from them. If i say i will be there today at 430pm i will be there. If i don't mention price you can expect i will pay your asking price.

That's great, but I'm certainly not saying I don't reply to sensible requests....just that I know when a buyer is 99% not serious at all so I don't waste my time. Typically when I sell a guitar I post multiple sharp photos with everything anyone would ever want to see, list all relevant specs, etc...so the requests are never for additional photos or anything reasonable. I'm talking more about the people who are clearly just tirekickers/headcases and ask for ridiculous stuff.

A few months ago I had a guy email me asking, among many other strange questions, for me to measure the action at the 1st fret and the 22nd. This is the kind of stuff I'm talking about...that guy will never come and actually buy the guitar, or if he does he'll put me through so much along the way that the time investment just won't be worth it. Another person emailed me a list of about 10 questions (each written with more entitlement in the tone than the one preceding it) and finished up by asking me to walk the guitar about 25 mins each way over to some restaurant he was playing guitar at that night so he could check it out and see if he likes it. This person too is a headcase and will 99% not be a real buyer.

I have no issues ever selling anything I post, so trust me when I say I cover my bases

[PsychoCid]

Right.

If you cover your bases in the posting, then it's generally very easy to tell who's serious and who's not

[slowhand84]

Right.

If you cover your bases in the posting, then it's generally very easy to tell who's serious and who's not

Yep, I've done this enough to know that more or less the only serious buyers are people who email stuff like:

"Hey, can I come by to check the guitar out tomorrow at (whatever time)" and include their phone #.

[honyock]

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.

This is why it is asinine...

The $600 reporting rule was originally enacted as part of the passage of the Internal Revenue Code of 1954 which was a major revision of the tax law. But $600 had a lot of purchasing power back then. According to the Bureau of Labor Statistics website, $600 in 1954 would be worth almost $6,200 in November 2021. A 1953 Corvette cost $3,490. A dollar in the 1950s could buy four gallons of gas, two movie tickets, a week’s worth of subway fares, and six packs of cigarettes.

Sent from my SM-G998U using Tapatalk

[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.

This is why it is asinine...

The $600 reporting rule was originally enacted as part of the passage of the Internal Revenue Code of 1954 which was a major revision of the tax law. But $600 had a lot of purchasing power back then. According to the Bureau of Labor Statistics website, $600 in 1954 would be worth almost $6,200 in November 2021. A 1953 Corvette cost $3,490. A dollar in the 1950s could buy four gallons of gas, two movie tickets, a week’s worth of subway fares, and six packs of cigarettes.

Sent from my SM-G998U using Tapatalk

Shhhh, shhhh.

The public isn't supposed to know how currency or taxes work.

[redman]

I've sold down to 7 and they are my keepers the only other guitar I hope to buy is another acoustic. I believe and hope my buying days are over for good I'll be 66 years old April 22nd I have a great rig 4 great electrics a bass an acoustic 6 and 12 strings. I need to spend whatever time I have left enjoying what I have and not chasing any more gear.

[Chocol8]

I currently have 6 with one in pieces. I want to dispose of two in order to get back down to 4 and MAYBE add a 5th because I have no P90’s. I am MUCH happier with the same money (or less) invested in just a few guitars I really like compared to collecting a bunch of cheap or mid level guitars that are OK.

As for selling, I would list the stuff all at once on CL and bite the bullet. You will have a week or two of answering emails and dealing with tire kickers and then it will be over.

Reverb will charge you fees and then you will pay cap gains taxes and that means your selling price will need to be much higher to break even. That said you can always list on Reverb with a not to PM you for a discounted price. I bought something last year that way. Seller had a Reverb price and then a much better buy direct price. The problem is you still need to get paid for it in a way that won’t generate a 1099 from PayPall or Venmo etc. and the buyer usually has to give up some protection.

You can also roll the dice on the cap gains. You don’t owe taxes on the full selling price, only the gain. You could always claim you sold the used gear at a loss, and it may even be true. The IRS will decide if it is worth challenging your claim, and as a very small player, odds are they won’t come after you. The problem is if they do, the Constitution doesn’t apply (in their minds and in practice) and you are guilty until proven innocent. It will be up to you to justify what your cost basis was. That’s pure BS because you didn’t know you needed to do that when you bought the stuff, but again, risk is super low for a handful of sales and not a regular business flipping gear.

[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.

[OMB]

CcHOCOL8 - Small Fish. I agree 100% and it is up to the seller to show what the cost basis of the sale was. The IRS does not have enough staff to focus a LOT of energies on this I don't believe. But if they do what would you like me to bring you in jail? Only kidding...

[PsychoCid]

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.

And yet.... None of them should owe anything at all.

But that's a story for another day and another forum, kids.

Those who don't understand history are doomed to repeat it.

[honyock]

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