Ammo resellers and the IRS?

[ldlfh7]

With all the people trying to make some quick cash reselling ammo (and screwing over whoever they can ) I wander if any of them have paid any tax on their sales....I doubt it. First of all, they are greedy asking so much for ammo. I know tax laws vary between states but once you sell over a certain $ amount you are required to claim that income. For most guys this would not be an issue but I have to imagine some guys are reselling on a large scale. I just thought it would be amusing if they had the IRS on their butts after price gouging honest people just looking to do a little shooting.

 

[Sentryau2]

If only there was a way to get the IRS to look into it. I doubt they will, with all thats going on that is.

 

[45_auto]

I know what you mean.

I wanted to buy some land. But all I could find was a bunch of greedy gougers trying to screw me over by selling it for what people would pay, instead of just selling it to an honest person like me for just a little bit more than the price that they originally bought it for.

 

[beatledog7]

You guys actually think it's a good idea to sick the IRS on people simply because they leverage a market? If you don't like what these supposed "gougers" are doing, don't take part.

 

[Reloadron]

Just a guess but I think the IRS is looking for much bigger fish to fry.

Ron

 

[mgkdrgn]

I offer to sell you something for a price, and you agree to pay it.

That is "gouging" how, exactly?

Is Ferrari "gouging" people who buy their cars ... just because you can't/don't want to pay that much for one?

And while we're talking to the tax man .. .lets send him around to your place. I'm =sure= you have paid your state sales/use taxes on all that stuff you bought on-line over the years, right?

 

[Well Now]

Be careful what you wish for.

 

[ldlfh7]

MGKDRGN - You must not understand what price gouging is. What is it called when a natural disaster hits and people go out selling bottled water at outrageous rates, or gas, or anything? Why has the federal government made laws on price gouging? Someone offers to sell it and people buy it because it is all that they can find...How is this not price gouging??????

Here is the definition of price gouging: Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.

 

[ldlfh7]

Ferrari is expensive because it is a good car and it has always been expensive..not just lately. Just because something is expensive is not gouging...its the sudden increase in price bro.

 

[mberoose]

I swear...

-nearly knocks self out facepalming-

 

[baz]

IBTL. I just cannot see this thread surviving for long. I know it pertains to "ammo," but really... :banghead:

 

[stumpers]

Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair

Many people have purchased ammo at high prices without being forced. I'd say that's reasonable and fair.

 

[aka108]

You buy a rifle or ammo from CMP and are not a AL resident. Do you call your state sales tax office and ask for a form to remit sales tax on you purchase as most state laws require. Bet ya don't. Everyone skims a little.
Report the 25 bucks you won at some Casino on your 1040. Bet ya don't. Little larceny in everyone.

 

[RiverPerson]

I do not care if the IRS gets their share. They take enough already.

 

[JRH6856]

Why has the federal government made laws on price gouging?

Those laws only apply to the sale of necessities under certain legally defined conditions, such as during a natural disaster or declared emergency. Ammo is not considered a necessity and in any event, there is no natural disaster or declared emergency in effect.

Someone offers to sell it and people buy it because it is all that they can find...How is this not price gouging??????

See above. Just because someone is selling something doesn't mean you have to buy it.

Here is the definition of price gouging: Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.

No, that is just your definition for the operation of a free market. If you don't think the price is fair or reasonable, then don't pay it.

 

[RetiredUSNChief]

Yes, there is a limit on such income for taxable purposes. I'm not sure what it is any more, but I did look into it once for yardsale research and other related private sales stuff.

HOWEVER, that said...

Do we REALLY want to give Uncle Sam any more reason to look into the private sales of individual citizens with respect to this? This is a double edged sword and will bite both ways in the long run.

Gougers suck, in my opinion, but when push comes to shove all they're really doing is reselling product at higher prices to those willing to pay that price, in order to make a buck.

Yeah, I think they somewhat exacerbate the current problems with ammunition availability, but I can live with that given the alternative you offer of loosing the hounds of war from the IRS.

 

[Reloadron]

I do not care if the IRS gets their share. They take enough already.

Now that I can agree with.

I think this thread is a DejaVue all over again.

Ron

 

[Telekinesis]

Here is the definition of price gouging: Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.

Not exactly. Most states that have a specific definition for price gouging in their legal code link it to states of emergency, which also implies that the item is typically a basic necessity for life or even a requirement to maintain a reasonable standard of living. As much as I love shooting, I don't think I can make a case that my standard of living is greatly effected by an increase in the price of ammo.

The majority of states only mention price gouging with respect to "unconscionably" of a contract which has typically been a rather nebulous term because courts are usually very hesitant (and rightly so) to change the terms of a contract after two legally competent parties have signed it. From what I have seen it is mostly used when one party has vastly superior negotiating power as compared to another party, and uses that power to take advantage of the other (Think of a large corporation with 100 lawyers on staff versus a single individual with no lawyers.)

If we seek legal action against sellers because they are charging market prices above what they originally bought the items for, our entire financial system would collapse. How would the stock market work if no one could buy a stock and hold it for a few years and then sell it for more than they paid for it? If there was no financial incentive in purchasing equity (stocks) or debt (bonds), there would be no incentive for the majority of people to fund businesses and it would be even more difficult for businesses to raise capital for operations or expansion. (Say good bye to the new Remington ammo plant...)
There's another whole argument about the economic necessity of arbitrage, but I fear that would get us into even darker waters regarding financial institutions...

 

[blackrussian]

How is this firearm related?

 

[45_auto]

LMAO!! ldlfh7, why don't you use the whole definition instead of just the part that makes you happy? What do you consider to be the natural disaster or civil emergency that is required for the practice of raising prices to be considered "price gouging"? Whether you like it or not, your restricted ability to go target shooting does not constitute a natural disaster or a civil emergency. As was pointed out to you earlier by JRH5856, "price gouging" only applies to the sale of necessities under certain legally defined conditions

You must be buddies with the bunch that just wants to apply the first part of the 2nd amendment, you know, the militia part.

Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. This rapid increase in prices occurs after a demand or supply shock: examples include price increases after hurricanes or other natural disasters. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies.

 

[HexHead]

MGKDRGN - You must not understand what price gouging is. What is it called when a natural disaster hits and people go out selling bottled water at outrageous rates, or gas, or anything? Why has the federal government made laws on price gouging? Someone offers to sell it and people buy it because it is all that they can find...How is this not price gouging??????

Here is the definition of price gouging: Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair.

Are you seriously comparing basic living necessities after a disaster to the inconvenience of finding ammo etc at a price you want to pay?

 

[DeadFlies]

The price of rimfire ammo just doubled! Call FEMA!

 

[Agsalaska]

I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.
I can resist the temptation to set the people claiming 'price gouging' straight.



OK. I am all better now.

 

[zxcvbob]

 

[Frank Ettin]

Welcome to the free market, supply and demand, and off-topic.