New 3rd Party Sellers Tax Law for 2022
So I just read that sites like ebay, mercari, etsy, etc have to report any sales of $600+ for the year. Let me start off by saying, yes, I know all income is supposed to be claimed on your tax return. Now that that’s out of the way… I think this is absolute ludicrous. $600 is not an appropriate threshold. $600 is like the casualest of casual sellers. All of these sites will lose money because of this ridiculous law. But I did read somewhere that it only pertains to profits. My question is… so if I do sell $600+ in 200 on ebay for instance, am I going to have to itemize deductions to show the only-profits numbers? Like this could be stuff purchased at a garage sale (which in reality, ebay is just one huge garage sale). So how would I show proof of purchase or price for something like that?
Terry Says
I agree. this is absolutely ridiculous. And to think that the IRS — which can’t even get deserved refunds out a year later — is supposed to monitor this? I think there will be such a stink as people realize this, it will likely get shelved.
Maybe it’s time for me to write a column on it. You are not the first person who has written to me!!
