Starting on Jan 1, 2022, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers who receive $600 or more in sales. For the People who are saying it's no different you are INCORRECT, the law now will require people to 1. track every sale 2. determine if the sale was profitable, 3. or prove if they sold the item for less than it's purchase price, 4. or prove the item was an inheritance and the value at the time of death is the same or higher at the time of sale, 5. track any expenses (fees, mileage to/from Post Office, receipts for Packing Supplies, internet expenses etc etc to offset the FEW items sold that might have been profitable, WHEREAS sellers didn't have to do this under $20k IF they knew that their sales were from items that were sold less than purchase price or an inheritance whose value hasn't increased since the time of death - this is a ludicrous waste of time for eBay sellers who aren't a business to have to track and report each item and expense at such a LOW threshold. Mothers, housewives, senior citizens sell household items and things they inherited to make ends meet, they have a right to get a RETURN on these items without profiting more than the items worth and not be taxed and they still will under the new law EXCEPT NOW they have to be a junior ACCOUNTANT and create spreadsheets, calculations and reports, consult and pay an accountant for accuracy on reporting sales to prove to the IRS that their household items and inherited items aren't selling for more than their original value and aren't taxable - MOST PEOPLE will NOT know how to itemize all the required information on a spreadsheet and won't take the time to do this so they will get charged the full 28% capital gains tax on the amount reported on their 2022 1099!!! PEOPLE PLEASE WAKE UP and stop saying this law is NO DIFFERENT! It's just another way to stick it to low-income people or senior citizens trying to make ends meet by selling their used/unwanted items as the IRS will profit from the people who don't track all that is required!!! BTW eBay is lobbying Congress to fight to get the limit raised to something acceptable, it used to be $20,000 and to go down to $600 to keep track of every item sold and FMV, expenses associated with each item (whether that item is profitable/taxable or NOT!) is a complete HARDSHIP on the people selling their used items. I agree that $20,000 there were probably 'some' people not reporting 'some' items that were profitable but to drop that limit to $600 is LUDICROUS, maybe $12,000 or $10,000 makes more since but certainly NOT $600 as the housewives, mothers, fathers and the senior citizens selling their household and inherited items will LEAVE in DROVES after they get that first 1099 because NO ONE has the TIME to create a spreadsheet with calculations to report that their items made NO PROFIT and weren't taxable in the first place!!!!! Mothers just need the extra money to feed their kids or buy them a new backpack or senior citizens to pay for food or prescriptions. Here is ebay's link to HELP lower the threshold and I suggest ALL SELLERS get involved and Send an email to your Members of Congress! https://www.ebaymainstreet.com/campaign/2021-federal-1099-campaign
