Quoted from chuckwurt:It means that if you sell a game for a profit, those profits are subject to tax. Just like they always have been. Only now, they are cracking down in the year and years and years of people not paying tax on income they have received from selling games.
But what if you sell a game for cost or at a loss? It could still be a multi thousand dollar sale that reports as "income" but it's not actually any profit.
That is where the whole thing crumbles and I have a huge problem with it.
If I sold my JP for $6549 which is exactly what I paid for it NIB, I'd be selling at a huge loss with all the stuff I've done to it, but to the IRS it would seem like it's straight up income.
I stopped using paypal last year because they changed it to $600 in total income in my state starting 2021.