Discogs - Help, Tricks, Secrets And Tips

waruv said:
Have you tried Reddit? You could probably shave a few bucks off given the no Discogs fee aspect of it all and the market for VMP and Indie there seems to be fairly strong.

To your original question, it's definitely a space and patience thing. I'd hypothetically say forever if space or collection size wasn't a limitation but to Kris' point, between the tax, effort, and honestly sheer satisfaction of clearing out stuff you're not gonna listen to it may be worth the trade in.
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I loathe Reddit, but after I get a tax bill for discogs I may change my tune...

I even tried selling through the forum here but too many comments from the peanut gallery turned me off. Might be time to jump back in if only to say N&G discount.
 
folsom_lives said:
I loathe Reddit, but after I get a tax bill for discogs I may change my tune...

I even tried selling through the forum here but too many comments from the peanut gallery turned me off. Might be time to jump back in if only to say N&G discount.
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Sadly the tax thing is still real there, they require Paypal G&S, you just ditch the Discogs fee itself. But yeah it's not necessarily easy that's for srue
 
waruv said:
Sadly the tax thing is still real there, they require Paypal G&S, you just ditch the Discogs fee itself. But yeah it's not necessarily easy that's for srue
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In that case, Reddit seems like more of a headache. Too much micromanaging that discogs seems to take care of with the marketplace interface. And if the tax implications are the same then a few $10 records traded to the local seems like low hanging fruit to clear out some shelf space.
 
folsom_lives said:
In that case, Reddit seems like more of a headache. Too much micromanaging that discogs seems to take care of with the marketplace interface. And if the tax implications are the same then a few $10 records traded to the local seems like low hanging fruit to clear out some shelf space.
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What is the tax implications for sales? I thought you have to sell $2000 or more for anything to kick in?
 
dbarila said:
What is the tax hit? You mean paying income tax from sales?
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Yep. So say I sell a record for $20 and receive $27 or so from Paypal. The way I think it works is the $27 is taxable income, so take out Paypal's cut, Discogs cut, shipping, transportation and time to mail the thing, the cost of a fresh mailer, and then 28% for Uncle Sam.

I might as well take it to my local for 50% of Discogs median value and save myself the time and mystery of whether the buyer is going to be a jerk. I've been lucky and had no issues but I undergrade all my records. I've never sold anything as higher than VG+.

To me, its only worth selling the "whales", but in general those are records I want too and I'm not selling them.
 
Kris said:
Yep. So say I sell a record for $20 and receive $27 or so from Paypal. The way I think it works is the $27 is taxable income, so take out Paypal's cut, Discogs cut, shipping, transportation and time to mail the thing, the cost of a fresh mailer, and then 28% for Uncle Sam.

I might as well take it to my local for 50% of Discogs median value and save myself the time and mystery of whether the buyer is going to be a jerk. I've been lucky and had no issues but I undergrade all my records. I've never sold anything as higher than VG+.
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So it counts the total transaction? Not the amount received after fees?
 
You always were supposed to pay, its just that third parties (Venmo and Paypal) have to send you a 1099 (K I think) if you get more than $600 through G&S payments.
 
dbarila said:
So it counts the total transaction? Not the amount received after fees?
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I think so, how does Paypal know about discogs fees? Don't you pay those after the fact? I heard they changed it but I haven't sold since then. If you're paying Discogs later, then yes, its on the fees as well, and on the shipping.
 
Kris said:
I think so, how does Paypal know about discogs fees? Don't you pay those after the fact? I heard they changed it but I haven't sold since then. If you're paying Discogs later, then yes, its on the fees as well, and on the shipping.
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I think discogs did away with bulk paying their fees later. Now all that makes it to your account is after everyone takes their cut.

That said I'm keeping a healthy PayPal balance to account for when the tax man cometh.
 
folsom_lives said:
I loathe Reddit, but after I get a tax bill for discogs I may change my tune...

I even tried selling through the forum here but too many comments from the peanut gallery turned me off. Might be time to jump back in if only to say N&G discount.
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You're going to get a tax bill if you use reddit too, but from the payment intermediary, likely PayPal. They have to report sales of over $600, just like ebay, Etsy, discogs, etc
 
Kris said:
I think so, how does Paypal know about discogs fees? Don't you pay those after the fact? I heard they changed it but I haven't sold since then. If you're paying Discogs later, then yes, its on the fees as well, and on the shipping.
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All of these entities are going to report the gross, or total sales amount. It's then up to the seller to deduct the shipping costs, fees, and original cost of the item, when reporting their net sales in their tax return
 
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