re: Explain this $600 tax thing to me like I am 12 please...

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I just received notice that the money I am getting through PayPal is being reported as "income" because it exceeds $600.

I sold something that I was taxed on at time of purchase and now I am being taxed again when I sell it? How is that right?

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You could argue it's not right but those are the rules. If you're worried about the taxes on such a small transaction you were right to sell it you broke MF

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What happens if you don’t have the receipt to prove the cost basis? Nobody would have kept that receipt from 15 years ago thinking they’d need it for this bullshite

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I'd personally still report it and hope I don't get audited

Or if it's a lot of money, I'd ask a CPA that specializes in tax what I should do. I just know that his proceeds aren't 100% taxable. He can at least deduct what he paid for it.

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originally paid and what you sold it for. If you made a profit, you owe the tax on that.

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Which is bullshite.