--2022 EBAY TAX ALERT--

Expect inflation to hit Ebay prices. Sellers will also be hit hard.

The government has dramatically changed the sales threshold for online sellers. Starting January 1, 2022, the gross sales reporting threshold has been lowered to $600, a dramatic change from the previous $20,000.

Ebay, and other such third party venues are now required to send detailed sales reports to the IRS. Sellers will now. receive a form 1099-K once the $600 threshold is reached and are required to file with the IRS. Credit card companies and Paypal are also included and required to report.

It will be interesting to see how the cummulative effects of this pan out. I suspect that many sellers will drop out of ebay sales, as well as the obvious price increases.

On the Ebay side of the equation, I'm sure Ebay isn't very happy about it either. Besides the obvious headaches this will cause for the online giant, it will require additional manhours and a lot of adjustments to impliment. I wouldn't be surprised if they raise listing prices to help offset the effects on revenue.

-Terry Shaffer