New tax rules and definition of "profit".

[swapij]

I've been reading over the new tax policy and the only relevant thing I've found is this: 

• "No need to worry— you only pay taxes on profits. You won’t owe any taxes on something you sell for less than what you paid for it. For example, if you bought a bike for $1,000 last year and then sold it on eBay today for $700, that $700 you made would generally not be subject to income tax."

My question is - how do we sellers prove what we've gained or lost without having a receipt for everything we've ever bought? Hypothetically, let's say I bought a vintage AT-AT in 1981 and paid $40  - about $135 in today's money. I sell it used in 2022 for $165 BUT I offer free shipping, about $20.  Then ebay takes it's 10%.  In the end I'm technically about $5 in the red. 

Does ebay simply report I sold something for $165? Without my receipt from 1981, or submitting my $20 receipt from the PO, etc. how then does it make any sense to spend so much time cleaning out one's closets just to get dinged on the taxes when you might not really be making any profit at all?

[swapij]

Guess I'll have to look into the Capital Gains thing, being as how I am NOT a business and I very much consider this a hobby that simply keeps my house from being cluttered. (I imagine this was 95% of ebay when it started - I miss those days.) 

It seems petty, regardless. I spent a day putting up wood for a friend recently and he gave my an old horsehide jacket in thanks. Sold it for about $100, which now will count towards that $600 cap. Profit? Well, looking at it another way, factoring expenses and certainly my time, I made about $5/hr for my labor. Should I report him for paying under the  Federal minimum? Not paying FICA and Social Security? I'm kidding of course, but it's still kind of frustrating.

[swapij]

Since I'm not a business and just a small seller I've done nothing in the past - I didn't need to because none of it was reported. Under this new law passed by congress recently everything over $600 gets reported and we'll receive a 1099.