For those who have used gunbroker, lately...

[tomhenry]

I've a question as it's been a long time since I sold anything there.

If you sell merch that totals over $600, does GB send you a 1099?

I ask because I do my part for the economy, viz. buy high and sell low.

So, if the answer to my question is yes, what if one buys a gun for $1,000, but sells it for $700? The seller realizes a net loss but still pays tax on the sale?

 

[Breakaway500]

Yes GB will send you an end of year 1099 statement if you breach the $600 threshhold.Ebay does too. Paypal too. etc.
Yes, you have a tax liability if you sell the gun for a profit IF you don't have offsetting expenses that you can deduct from your gross income and you file a schedule C as a business.

Also be aware that GB now has a buyers premium of 1%.(They call it a compliance fee)

 

[johngross]

if one buys a gun for $1,000, but sells it for $700. The seller realizes a net loss but still pays tax on the sale?

You need proof/documentation should you get audited by the IRS.

A 1099 does not include your cost basic (how much money you have invested in the item, such as the actual cost of the gun, shipping charges, etc.). So the IRS will assume your cost basis is zero, hence you owe tax on the full $1,000.

Since in your example your cost basis is higher than what the gun sold for, you would put zero for your profit or capital gain.

BUT. Should you get audited, you will need documentation of your costs.

 

[CAJUNLAWYER]

Good thing to know. I'll never sell a gun on gunbroker again. No wonder they are charging 1% to the buyer. The record keeping and expense of mailing out countless 1099's must be astronomical!!! Would love to know what the cost of compliance is for gunbroker is. Anoter fun rectal reaming from your friendly government.

 

[johngross]

No wonder they are charging 1% to the buyer. The record keeping and expense of mailing out countless 1099's must be astronomical!!!

Actually, the 1% fee from Gunbroker is for the state sales tax issue. The 1099 reporting went into effect this year (2023), thus 1099s will be mailed next year (2024) for this years taxes.

Which means, probably, a new fee next year from gunbroker for the 1099s?

 

[akriet]

How do they get your ssn or tax id number?

 

[CAJUNLAWYER]

How do they get your ssn or tax id number?

I suspect that at some point in the listing process the seller will have to give this information......just a WAG

 

[llowry61]

How do they get your ssn or tax id number?

When I worked in the CC industry, we were required to send 1099's on any debt forgiveness of $600.00 or more. If we did not have a TIN we were required to send a W9 requesting the information. When we did not get a response, we would create and send the 1099 with the information we had, and I believe we placed "refused" in the TIN box of the document.

We were required to retain evidence of sending the W9 and provide it upon request by the IRS.

Not having a TIN did not relieve us of the reporting requirement. I am assuming the same would be true of GB or other entities required to report income.

FWIW

 

[Telecaster]

Gunbroker doesn’t send you payment for your merchandise, your buyer does. So GB doesn’t have to send a 1099 on your sales.

Your buyer probably should, but who’s gonna snotch?

 

[Beemerguy53]

Just another reason to buy and sell via the Forum...

 

[Breakaway500]

"Gunbroker doesn’t send you payment for your merchandise, your buyer does. So GB doesn’t have to send a 1099 on your sales"

Incorrect.

eBay does not get paid by the buyer either,but you will get a 1099 when you sell over $600 worth of merchandise. Period. Ask the millions of sellers who get them. (me included) Paypal doesn't do anything but transfer money from one hand to the next (and skim off 3%) but they also send you a 1099...and most of that total is already included in the Ebay 1099.
With the IRS you are guilty until you prove your innocence. Way past time for a good revolution..

 

[ladder13]

So, anyone here get a 1099 this year from GB?

 

[Jebus35745]

I list guns for people that don’t know how and charge a very fair fee to do it. I never got anything from Gunbroker, Larry

 

[jeffrefrig]

Whatever happened to good old-fashioned lying?
"Cheat on your taxes, don't be a fool;
But don't you forget about the Golden Rule.
Skip a rope..."
Are there capital gains, too? Buy a new 15-3 in '73, keep it nice, sell it in '24 for 4 times what you got it for? I mean, let's be fair to our gov't. They are here to serve us. We should at least help them out in return.

 

[stevebarracuda]

IRS considering a $5000 limit for 2024 , but has not made a decision yet.

 

[rwsmith]

I.......

I ask because I do my part for the economy, viz. buy high and sell low.

............

When I go to my LGS the sales people nudge each other, grin and say, "Here comes Top Dollar Smith."

 

[A10]

Here's my advice for those who die,
Declare the penny's on your eyes...

 

[ladder13]

I list guns for people that don’t know how and charge a very fair fee to do it. I never got anything from Gunbroker, Larry

Larry, so no 1099 was issued to you for 2023? I wonder if they have delayed reporting once again.

 

[Ga Johnny]

I was under the impression that was suspended after tax year 2023

 

[Jebus35745]

I wanted to ask Gunbroker outright and kept forgetting. Finally did but waited about a week for this answer. Simply asked if they would be sending out 1099’s. Here is the answer! Good news, Larry

Hi Larry,

GunBroker does not facilitate the collection of payments directly from buyers to sellers. Therefore, we do not issue tax documents such as 1099 forms.

We advise that you print your monthly statements to assist in reconciling your fees, in addition to obtaining a Selling History Report.

Selling History Report

For details specific to you, we recommend that you consult with your Tax Advisor.
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