Yeah, I'm not a fan of their consignment. That is a painful and slow process.
Consigning/buying with The Real Real TRR
- Thread starter KPCoppola
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I did a buy out with TRR and it took 12 days for payment via direct deposit. They say it can take up to 14 days.
Just to let everyone know, TRR (as of Nov-01-2021) will be changing the rules .. such that any item that is "UNBRANDED JEWELRY" will only get the 65% (or lower depending on the cost of the item). So, even if you are a VIP Customer, this rule will apply going forward. This REALLY pisses me off because, yes .. of course I have "unbranded" Jewelry .. heck, some of it is mine that I made in the past! So, as such .. I'm getting stuff in BEFORE the Nov-01 date!! Just wanted to let you all know!
Did any of the other consignors get a notice from TRR in the app that said we need to provide our Social Security number? They said it was some regulatory requirement. They said they wouldn’t give me my payment until I had updated my account. If it wasn’t in the app directly I’d have thought it was a scam.
I’m not sure if they asked for my SS# but I know that they did want me to update my information. When I inquired about it, they said it had to do with direct deposit. They told me to ignore it since I have my checks sent to me. It may take longer but to me the fewer places that have my banking information, the better. Every time I log on it still tells me to update but like I said, I ignore it and my checks still come in the mail.
Probably because of new JB administration rules that anyone selling more than $600 worth of their cast offs (clothing, grandma's antiques, the stuff you inherited from your parents, whatever's been gathering in your attic and garage for years) must report that "income" on their taxes. Used to be the limit was $20K. Now, eBay, Poshmark, Tradesy, TRR, etc. will be required to keep tabs on your sales and send you a 1099 reflecting total sales at the end of the year.
This won't actually go into effect until 2022 and then you'll get a 1099-K for sales over $600 but, if you are basically just selling your own personal belongings at a loss in the equivalent of an online garage sale, it should not impact your taxes at all. If someone does manage to sell items for a profit then, yes, that profit would be taxable but that would likely be an extraordinary exception.
That sounds heartening, thanks for clarifying. I got this info from my accountant, so it sounds like the administration or whomever needs to do a better job of getting across exactly what this means.
No kidding! They need to do a much better job of communicating this. People who are just selling their own personal stuff at a loss aren't running a business with a profit motive and it isn't a "hobby" either. (It qualifies as a "burden" or a "chore" in my mind lol, one that has made me much more mindful of what I buy since I dislike the selling process.) So, my understanding is that you might receive these 1099K's if you meet the reporting threshold, but you will not have to report the information on your return, unless you turned a profit (high unlikely). But, check back with your accountant in a few weeks or months after they've had a chance to review the requirements.
The point of all this new reporting is that they hope to catch those people who are actually running a business by selling stuff they source from wherever at a profit, or resellers who might have gotten away with not reporting their sales in the past, or just people who collect payment for their services through Paypal, etc.
Yes, it's pretty clear why they are doing it. But seriously? Down from $20K to $600? You know who that hurts? Not the "rich," whom we have been castigating for years for not paying their "fair share," that's for sure. No one who "sells" $600 worth of stuff a year is making any kind of bank. Hell, if your profits are $20,000 a year, you're barely getting by. Most of these people are just drumming up pocket money to turn around and spend on something else. It's a wash, and the items have already been taxed a bazillion times besides.
And what a paperwork nightmare. Not only will it be a burden to all these selling platforms, who now have to gather—and protect—sensitive information like SSNs and send out what could amount to hundreds of thousands of 1099s every year, but it will also be a hair-puller for accountants and tax preparers who will have to figure out how, exactly, to prove that those monies are not "profits," just the proceeds from selling Aunty Whomever's funky Christmas present that's been languishing in the hall closet.
Just stupid all the way around. Go after the real tax dodgers and leave the second hand dabblers alone.
I was going to speculate that this was why in my post, but then I read that bit about selling it at a loss and thought "Ok, I'll wait until someone on here who knows what they are talking about weighs in."
What's annoying is that I don't have any receipts to PROVE that I bought stuff at a higher price than I'm selling it at, although it sounds like they aren't very likely to ask me.
And I agree, if a few people want to make some of their $ back, and prevent items for going into a landfill, don't throw us in with the super wealthy who should be taxed.
What's annoying is that I don't have any receipts to PROVE that I bought stuff at a higher price than I'm selling it at, although it sounds like they aren't very likely to ask me.
And I agree, if a few people want to make some of their $ back, and prevent items for going into a landfill, don't throw us in with the super wealthy who should be taxed.
I also get checks sent to me, and the notice said they wouldn't send it unless I updated. I'll ignore from now on.
TRR is so arbitrary with their pricing and I don't understand their approach to listing.
I sent them a pair of Chanel boots, with the tags on (no box). I've tried the boots on but never wore them outside. TRR said the condition is very good, and noted there is a little creasing. I'm ok with that, but they REMOVED the tags, so now the boots cannot be listed with tags. It was clear before that the boots have never been worn due to the condition of the tag...that they have removed from the soles of the boots.
That being said, they are currently marked higher than the original retail price...
I sent them a pair of Chanel boots, with the tags on (no box). I've tried the boots on but never wore them outside. TRR said the condition is very good, and noted there is a little creasing. I'm ok with that, but they REMOVED the tags, so now the boots cannot be listed with tags. It was clear before that the boots have never been worn due to the condition of the tag...that they have removed from the soles of the boots.
That being said, they are currently marked higher than the original retail price...
Do you have credit card receipts? Nothing at all? Online email order confirmations? If you bought your items from a department store, you might be able to go back and search through old orders too and take screen shots of the details.
Starting in 2022, if you think you'll go over the $600 reporting threshold, I'd start keeping a spreadsheet. List the item and all pertinent information that you can recall, to the best of your knowledge. The date you bought the item, the cost, where you bought it, where you sold it and for how much, basically as much information as you can recall. Even if you have no receipts, the price of certain items is well known so if you are selling a classic m/l Chanel flap that you bought new in 2017, it is pretty easy to prove that the cost in 2017 was $4,700 + sales tax in most cases. Then you can provide this spreadsheet to your accountant at the end of the year.