So as to not muddle the dump trailer thread, I have a new question(s). I'm considering selling my three existing open utility trailers. I'd like to help fund a decent portion of a new 6x10 deck over dump. The trailers I'm looking to sell are: 5x10 CAM trailer. 3500 lb. axle, tailgate, 15" rims, 18" open sides. I went through the whole thing maybe 5-6 years ago. 6.5x10 Pace American trailer. 3500 lb axle, no tailgate, 15" rims, 24" steel sides. I went through this one recently last summer. Completely new 3" c channel floor, new paint, new wiring, new lights. 5x10 unknown brand super heavy duty trailer. 6-7k- 3" axle, 15" rims, electric brakes My question is: Obviously I want to get as much as possible. Seeing what I have into them with original purchase price, material and labor. Then comparing similar new and used comparable models, I'd have to get: $1,200 for the 5x10 CAM $1,500 for the 6.5x10 Pace American $1,200 for the unknown brand I don't want to pay tax on the sales which I believe I will if I use FBMP or CL. My understanding is its only exempt if under $600 or you can prove you paid more for them than you are selling them for. Neither of which are the case with any of the trailers. I'd have to jack the price up 25-30%, to offset the taxes. What would you guys do? Selling locally is tough, as I live on a back road with minimal traffic and have no place there to park one, let alone 3 trailers anyways. You can see the Pace American very well here: The CAM very well here: And the homemade trailer here:
Narrower on trails, less likely to snag on trees or stumps, fits in tighter places, less room needed in a garage or parking spot, generally lighter which is better for carrying capacity
I’m aware it will be higher for loading, but I will most generally load it with my Kioti. The stability difference doesn’t worry me either as 6 feet is already pretty wide imo. My 4x6 is a deck over and I’ve never even had it remotely close to tipsy. Even with 3 feet of firewood in it
I can’t speak to the trailer values, but it’s definitely a great time of year to sell. I don’t think the advertising method affects whether you should pay sales tax. Maybe I’m naive—that’s usually the case. I’ve sold a few things for that much on CL and it never even occurred to me to pay sales tax. I actually don’t mind paying sales tax (WA State has no income tax) so I’m not intentionally avoiding it, but for things of this price point I never would. I’d advertise on both sites (separate ads for each trailer), include tons of pictures and the link to these videos—they’re awesome and they show that you know and care more than 99% of other trailer owners. And mention why you’re selling, and that you’re selling all three. They’re more likely to travel if they can look at a selection. (You probably know all this.) I’d be willing to pay a premium to buy from someone like you! Good luck!
Thanks man. I appreciate the kind words. I was researching the CL and FBMP stuff. It appears that even if the IRS does not send you a 1099, it's still your responsibility to pay the taxes. I doubt very many people do, but that's what the research indicated. I also looked at new trailers similar to mine to compare prices. If we focus on the American Pace trailer, the closest new trailer I could find is the Big Tex 35SV. They have 10, 12, and 14 foot long models. All 6.5' wide. The 10 foot model has the same 3500 lb axle as mine, same 24" steel sides, and is $3,500-$3,800.
It would never ever even occur to me to think about paying a sales tax on something I owned and sold. Might would get me in trouble, I dunno....but they can kiss my grits. However, I understand you taking that into consideration.
It's a law on the books for online sales over $600 I guess. New tax law requires third-party sellers to pay taxes on earnings over $600. From reading about it, it sounds like its more for online Ebay sellers with third party payment types like Venmo, PayPal, etc. These types of "businesses" can't accept cash as a payment typically, unless perhaps the buyer just so happens to live locally. I think its pretty hard/about impossible for them to track or prove cash sales transactions. Even though they say you are "supposed" to self report those sales over $600, I doubt very many do. This is why FBMP asks you to fill out the survey stating if an item sold and for how much. I don't fill those out. None of their damm business. I agree its pretty silly. Trying to nickel and dime the middle class isn't going to help the economy. What this will do is force more sellers to accept other non trackable payment types like maybe crypto currency. I could also see them trying to outlaw cash one day. They don't like it when they don't get their cut.
I did a little half-assed research, and it looks like if it’s a personal item and you’re selling it at a loss then it’s also exempt. Even if you got a trailer for free or cheap, and then invested time and materials into it, you could argue that you’re selling it at a loss.
Yes, that's how I understood it as well. For items you bought new or newer and are selling for less than you paid, its exempt. To do it legally though would be pretty tough. I'll explain why. The orange trailer I re-did. I paid I think $300 for it. Needed a ton of work, as you saw in the video. I had to buy like $300 or so worth of new steel, countless cans of spray paint, new wiring, wire loom, new lights, new hardware, etc. All told I have probably $700-$800 into it. That's not including the 30 hours or so I spend cutting, removing the floor, grinding, fitting, welding, painting, wiring, reinstalling the floorboards, etc. Let's say I sold it for $1,500. At a quick glance it would appear that I made $1,200. Really I did not....To prove I did not I would have to bring all those receipts to my accountant. Then how do I prove my labor hours? I did it myself. Would they even give me credit for my own labor? I didn't pay myself, and who would determine the hourly amount? If the hours claimed are fair? I could 100% argue while being completely transparent that I have over $1,500 into the trailer with labor included. Easily. However... It would be a huge, huge hassle to do so, and I'm sure the accountant would charge to do all those extra input items. To make it worse you are supposed to report this quarterly. Not only do you have to pay taxes on it, you have to pay someone to do those tax filings unless you can do it yourself. Its just a money grab from the IRS. They are too lazy to do the work and expect people to report themselves and do the IRS's job. Ridiculous is what it is. Not hard to see why people don't claim it. Why the hell would they!
Cash only for them and I wouldn't worry about taxes, I have never done taxes for something I have and then sold.
Here’s a totally different approach maybe. Around here trailer dealers take trade ins all the time. Take your pictures and videos to whoever has the new trailer you want and see what they might be willing to do. If they are even remotely interested in working with you and aren’t to far away they might come to your place to check them out. All 3 could be gone at once and you have the new one you want without a bunch of time spent trying to sell them yourself. Not to mention the lost sleep about the whole tax deal…. In my part of the country nobody would ever give that even a passing thought. Sell it and buy something else and move on is how it would work out here.
Good idea. Your part of the country must be big. I’d never dream of paying taxes on a private cash deal.
Keep in mind I never said I planned to pay taxes, just that you’re “supposed to” if over 600. I don’t plan to either.
