I bet this isn’t going to be on many ppl’s radar (unless they read their notifications from Venmo & such) until January ‘23. Anyone who sells goods/services that total $600+ using third parties like PayPal, Venmo, CashApp, will receive a 1099k and be required to report it as income. Next year a whole lot of ppl are going to be surprised when they find out from PayPal they have to pay tax on that garage sale or for selling their old car. Note: transactions between family & friends are excluded - gifts, reimbursements, personal loan repayments.
This Bloomberg Law article gives a decent overview. Like the few other articles I read, it skips how this tax reform will impact individuals selling their stuff.
My off the cuff take for 2022:
> Accept cash only for stuff you sell & for anything you don’t have the original receipt regardless of what year it’s sold
> Start keeping your receipts now if there’s any chance you might sell it later. The cost new can offset the resale "income" & the time is coming where cash won’t be an option.
Here’s the video that I stumbled across first. Anyone familiar with this YTuber? Maybe he’d be a good guest?
The Economic Ninja
I kind of assumed that this whole time this was how it worked and so I avoided selling stuff online. Next they'll tell us they listen to our phone calls
