Consigning/buying with The Real Real TRR

[GucciLouisFendiOhMy]

Just had yet another issue with them. I bought 4 pairs of jeans in a specific cut/material blend and they sent me other items/or they screwed up the listings to begin with. I went circles with them trying to return them. After I told them I deleted the app and wouldn’t be purchasing from them moving forward they then said they’d accept the return if I wanted to cover return shipping. I was absolutely fuming. It’s unfortunate that they’re not training staff to do things correctly (assuming it’s training). This was the straw that broke the camels back.

 

[CPG]

So tired of RR. Just received a Burberry Coat that was supposed to be in excellent condition. It has stains on all over it. One the right sleeve, front of the coat, inside of coat!! They better refund my original and return shipping!!! I just wasted $26 in shipping if i also have to pay the return shipping.

They have always had an inexplicable standard for what qualifies as Fair, Good, Very Good, and Excellent. They also call things by odd names (open front coats are "capes"), and confuse male jackets, coats, and blazers with female. I recently ordered a peacoat that was supposed to be in Very Good condition with "minimal wear" that arrived full of animal hair and stains on the sleeve. A "slouchy" blazer in a small that was so oversized when it arrived, I finally figured out that it was actually a men's jacket.

To their credit, I pointed all this out to them and they refunded me the shipping both ways. So push your claim!

 

[CPG]

Nope.

Yesterday I got an email from eBay, a platform on which I am now selling the collectibles I inherited from my parents when they died, to please contact my congress people and protest this new law, which DID go into effect.

I sent an email to my accountant, and this is what she told me about second hand selling at this point: if you sell more than $600, whether a variety of items or a single item, the platform on which you sold that/those items will send you a 1099 and report to the IRS. You will then have to pay INCOME tax on that amount, plus 16% small business tax. Doesn't matter if you have receipts to prove you sold at a loss. It's considered income and is taxed as if you earned that income as a sole proprietor.

If this is true—and, again, it came straight from my accountant—this will effectively kill the second hand market, punishing those people who depend on a little bit of extra spending money a year to get by and turning away those who consider buying and selling second hand a fun way to implement the philosophy of reuse/recycle/repair.

Please, someone tell me this isn't true to I can fire my accountant, LOL.

 

[Catash]

Yesterday I got an email from eBay, a platform on which I am now selling the collectibles I inherited from my parents when they died, to please contact my congress people and protest this new law, which DID go into effect.

I sent an email to my accountant, and this is what she told me about second hand selling at this point: if you sell more than $600, whether a variety of items or a single item, the platform on which you sold that/those items will send you a 1099 and report to the IRS. You will then have to pay INCOME tax on that amount, plus 16% small business tax. Doesn't matter if you have receipts to prove you sold at a loss. It's considered income and is taxed as if you earned that income as a sole proprietor.

If this is true—and, again, it came straight from my accountant—this will effectively kill the second hand market, punishing those people who depend on a little bit of extra spending money a year to get by and turning away those who consider buying and selling second hand a fun way to implement the philosophy of reuse/recycle/repair.

Please, someone tell me this isn't true to I can fire my accountant, LOL.

This sounds terrible. How is it different from selling an old car?

 

[CPG]

This sounds terrible. How is it different from selling an old car?

It's not. Selling anything for a loss, whether a car, an appliance, or grandma's antique clock, has always been considered a reimbursement of sorts. In other words, you didn't make a profit on it. That's what I initially wrote to my accountant about. I'm selling a bunch of stuff I inherited from my family, I don't have receipts for original costs, what should I do? And she said: doesn't matter. If you are being issued a 1099, it's INCOME, and taxed as such, including an additional nearly 16% tax slapped on for being a "sole proprietor".

The US government is trillions in debt, printing money faster than you can snap your fingers, and instead of cutting back on spending, they're looking for ways to add to the coffers. So their thinking now is: if you make ANY kind of money, even if it's being reimbursed for something you already paid for and paid the tax on (i.e., selling the cast offs piled up in your garage on eBay), they want their cut.

 

[jbags07]

It's not. Selling anything for a loss, whether a car, an appliance, or grandma's antique clock, has always been considered a reimbursement of sorts. In other words, you didn't make a profit on it. That's what I initially wrote to my accountant about. I'm selling a bunch of stuff I inherited from my family, I don't have receipts for original costs, what should I do? And she said: doesn't matter. If you are being issued a 1099, it's INCOME, and taxed as such, including an additional nearly 16% tax slapped on for being a "sole proprietor".

The US government is trillions in debt, printing money faster than you can snap your fingers, and instead of cutting back on spending, they're looking for ways to add to the coffers. So their thinking now is: if you make ANY kind of money, even if it's being reimbursed for something you already paid for and paid the tax on (i.e., selling the cast offs piled up in your garage on eBay), they want their cut.

Exactly. I have a very good accountant too. He said the same. If we resell our stuff, be it on ebay, poshmark, or to TRR or FP, we are now small business owners to the IRS. And he said we will be paying these taxes on our earnings….federal tax, state income tax, social security tax, and medicare tax.

I’ve recently sold a bunch of contemporary branded bags all still new with tags, for considerably less then what i paid, minus postmarks 20% and/or ebays 15. and i am decluttering my premier bags, and losing quite a bit to these resellers who lowball their offers. And now we must pay these huge taxes on top it.

i will sell whatever i need to sell, this year. Deal with this IRS issue once. Then i am done. Its not worth it. And after next years tax season, when many sellers get hit with these taxes, i suspect many platforms will be losing sellers. I don’t think a lot of sellers realize the impact these new rules will have.

 

[CPG]

Exactly. I have a very good accountant too. He said the same. If we resell our stuff, be it on ebay, poshmark, or to TRR or FP, we are now small business owners to the IRS. And he said we will be paying these taxes on our earnings….federal tax, state income tax, social security tax, and medicare tax.

I’ve recently sold a bunch of contemporary branded bags all still new with tags, for considerably less then what i paid, minus postmarks 20% and/or ebays 15. and i am decluttering my premier bags, and losing quite a bit to these resellers who lowball their offers. And now we must pay these huge taxes on top it.

i will sell whatever i need to sell, this year. Deal with this IRS issue once. Then i am done. Its not worth it. And after next years tax season, when many sellers get hit with these taxes, i suspect many platforms will be losing sellers. I don’t think a lot of sellers realize the impact these new rules will have.

It's awful. We were also assured that this would not affect hobby sellers who were clearly just trying to clean out the garage and attic and sell family "junk," only those people who were clearly doing it full time to "make money" and "cheating" by not having a business license.

Obviously, not the case.

I know that eBay is fighting tooth and nail to stop it. The other platforms should do the same, but I have not heard from them like I have from eBay. Because it's not just a nightmare for us, but for these platforms. Can you imagine the hassle of having to establish and staff an entirely new department to send millions of 1099s to garage sale sellers?

What kills me, and I've said this before on here, is that if our government is truly concerned about the environment, then they should applaud and support people who resell used merchandise. Not make it impossible for us to do.

I understand if you are a business. If you have a business license and sell through PM, eBay, etc. then you are already paying taxes. If you are making a profit but don't have a business license, shame on you.

But the majority of sellers are not small businesses. I'm certainly not. I don't scout thrift stores for deals and then mark up that designer pair of jeans I scored for $5 and sell it on PM for $25. I sell stuff I no longer use or wear, at way below what I originally paid for it, and use that money to purchase a few new things. Rinse, repeat. It all stays in circulation and out of the landfill.

Like you, I'm done. I'll give it away (even tho charitable donations are no longer deductible thanks to the personal deductions now being so high), or maybe even get a group of girlfriends together for wine, snacks, and "sales."

 

[remy12]

It might help to write your Senators or Representative. If enough people complain that selling your own items is not a business it may help to make changes to the law.

 

[CPG]

It might help to write your Senators or Representative. If enough people complain that selling your own items is not a business it may help to make changes to the law.

eBay has a link to an automatic letter sent to your representatives in Congress. You just put in your zip code and fill out a few other things and it goes straight to them.

 

[remy12]

eBay has a link to an automatic letter sent to your representatives in Congress. You just put in your zip code and fill out a few other things and it goes straight to them.

Excellent. Thank you

 

[CPG]

Excellent. Thank you

If you're a member of eBay, it should be in your messages already.

 

[jbags07]

It's awful. We were also assured that this would not affect hobby sellers who were clearly just trying to clean out the garage and attic and sell family "junk," only those people who were clearly doing it full time to "make money" and "cheating" by not having a business license.

Obviously, not the case.

I know that eBay is fighting tooth and nail to stop it. The other platforms should do the same, but I have not heard from them like I have from eBay. Because it's not just a nightmare for us, but for these platforms. Can you imagine the hassle of having to establish and staff an entirely new department to send millions of 1099s to garage sale sellers?

What kills me, and I've said this before on here, is that if our government is truly concerned about the environment, then they should applaud and support people who resell used merchandise. Not make it impossible for us to do.

I understand if you are a business. If you have a business license and sell through PM, eBay, etc. then you are already paying taxes. If you are making a profit but don't have a business license, shame on you.

But the majority of sellers are not small businesses. I'm certainly not. I don't scout thrift stores for deals and then mark up that designer pair of jeans I scored for $5 and sell it on PM for $25. I sell stuff I no longer use or wear, at way below what I originally paid for it, and use that money to purchase a few new things. Rinse, repeat. It all stays in circulation and out of the landfill.

Like you, I'm done. I'll give it away (even tho charitable donations are no longer deductible thanks to the personal deductions now being so high), or maybe even get a group of girlfriends together for wine, snacks, and "sales."

Its awful on every level. As you said, its one thing for people who purchase at estate sales and goodwill, then sell for profit. This is indeed a business. But to sell our own stuff, stuff we already paid sales tax on, and to then sell at a loss, pay seller fees, then all of these taxes! Its maddening. I appreciate you mentioning the ebay link to email our reps, i will do that. But if this is not repealed, it will spell disaster for all selling platforms.

i am wondering, and if no one here knows i will give FP and Yoogis a call….if we accept store credit rather then direct payment, does that count toward the 1099 stuff? Or is it not considered payment? I just received 4 quotes today, and while they are low, if store credit is exempt from the tax rules, it might be worth just doing store credits instead of payouts, unless there are no items of interest to purchase.

 

[CPG]

Its awful on every level. As you said, its one thing for people who purchase at estate sales and goodwill, then sell for profit. This is indeed a business. But to sell our own stuff, stuff we already paid sales tax on, and to then sell at a loss, pay seller fees, then all of these taxes! Its maddening. I appreciate you mentioning the ebay link to email our reps, i will do that. But if this is not repealed, it will spell disaster for all selling platforms.

i am wondering, and if no one here knows i will give FP and Yoogis a call….if we accept store credit rather then direct payment, does that count toward the 1099 stuff? Or is it not considered payment? I just received 4 quotes today, and while they are low, if store credit is exempt from the tax rules, it might be worth just doing store credits instead of payouts, unless there are no items of interest to purchase.

And it won't stop there. Next, they'll come after proceeds a family makes on an estate sale, the proceeds you make on the sale of your house, and then inheritance, leaving people with zero way to pay for funeral expenses or to pass along family money to secure the finances of the younger generation. ALL stuff that was already taxed, in a myriad of ways, but no matter. As usual, it's the middle class who bears the burden of this garbage.

Hmmm . . . that's a good point about credit, but I think it's likely to work the same way. If you opt in for credit, you'll be sent a 1099 for a "barter" transaction?

 

[jbags07]

And it won't stop there. Next, they'll come after proceeds a family makes on an estate sale, the proceeds you make on the sale of your house, and then inheritance, leaving people with zero way to pay for funeral expenses or to pass along family money to secure the finances of the younger generation. ALL stuff that was already taxed, in a myriad of ways, but no matter. As usual, it's the middle class who bears the burden of this garbage.

Hmmm . . . that's a good point about credit, but I think it's likely to work the same way. If you opt in for credit, you'll be sent a 1099 for a "barter" transaction?

agreed. I think they will continue to impose new taxes on whatever they can

So i called FP and if you sell them bags, they will not issue 1099’s. They said this type of transaction is exempt, whether you accept a direct buyout or store credit. Thank goodness! For now at least. I’ve needed to downsize my collection and i am doing it this year, before they can create new tax rules lol.

 

[CPG]

agreed. I think they will continue to impose new taxes on whatever they can

So i called FP and if you sell them bags, they will not issue 1099’s. They said this type of transaction is exempt, whether you accept a direct buyout or store credit. Thank goodness! For now at least. I’ve needed to downsize my collection and i am doing it this year, before they can create new tax rules lol.

Ah, so it must then only apply to selling on the platforms where you are the direct seller, like eBay, Poshmark, and Tradesy. But NOT where you are a consignor, like on The Real Real, etc.

Interesting.

And how confusing for everyone involved!