I live in one of the states that changed '21 tax laws to require companies like Ebay to submit 1099Ks to the IRS once a threshold is met. Mine is Missouri and the limit was changed to $1200.
I was completely caught off guard by this when I received one a couple weeks ago for the '21 tax year. I barely passed the limit – but everything I sold was my personal stuff. Which I sold for less than I paid for it. Luckily I was able to find receipts for most of it and will only be on the hook for a fraction of it.
Starting in '22 federal tax law will require anyone that hits $600 be given a 1099k. This is going to be an absolute nightmare for the bulk of sellers that use sites like Ebay as a kind of electronic garage sale for their old stuff. Didn't keep the receipt for that Macbook you bought 4 years ago? – You'll pay tax on 100% of it (minus shipping, etc.).
This is going to turn off so many sellers that simply don't want to deal with the tax implications/headaches.
The silver lining… maybe this will cut down on the ridiculous amount of 'scalpers' keeping stuff like PS5s from ever hitting store shelves.
*I'm not a tax advisor, so do your own research/confirmation on tax laws – And I have no stock in Ebay or any other resell site.
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