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AlIs it my understanding that in the near future, paypal will provide the IRS with data pertaining to all funds one has received as a seller? And, if this is so, would the liability be only on the profit made from such sales or all sales in general? Isn't there a fine line here defined by "business v. hobby"...business being where one receives primary income from eBay sales v hobby where one merely dabbles on eBay and thus is exempt from this.
Clearly I'm a bit in the dark on this topic...however, it is my intent to liquidate my collection in the next 5-10 years and am pondering whether I should accelerate this time frame, or is all this moot? Any funds I receive currently from sales and paid via paypal are immediately moved to my checking account and not allowed to sit and grow any form of interest or dividend within the paypal structure.
I estimate my bb card collection net worth in the $60k range and am simply wondering if I have a potential IRS issue in the future.
Can anyone quote IRS regs pertinent to this or is this a non issue to me when I sell?