Democrats in action...
I’ve thrown red flags ever since Biden pushed this - consider the consequences:
You are NOT an online business - you simply use one of these services to buy and sell online - clean out your garage and have some useful stuff to unload? Well - if the grand total for the year of “sales” is $600 - you were supposed to report it (and the Biden policy made the processors do the reporting).... So:
That extra chainsaw you never use... you paid $600 for it (plus another $30 for the extra chain) and $40 for a case... you are in it $670... You sell it on FB Marketplace for $350... using PayPal...
You also have a bicycle... that you paid $800 for a few years ago... but ever since your injury - you just don’t ride any more - so it gets listed and sold for $300...
You have not made a profit by any measure - but because you had “income” through Paypal payment processing - it gets reported to the IRS as “income”... and technically - you pay income tax on it -
And many don’t know - crypto currency is treated very similarly - Say you initially bought $1000 worth. It went up for a while, then the bottom kind of fell out - so you waited for a bit of a positive move and sell... you got $700 of your original 1000 back... and the $700 is reported to the IRS as “taxable income”...
What the heck?
The items you describe would fall under “Capital Gains’ tax-—if anything. NOT ordinary Income.
HUGE difference.