When I was a kid, my grandfather gave me some collectible items, which at the time were worthless.
Many years later, this stuff is actually worth a few thousand dollars. If I sell this stuff on eBay, what would my tax liability be?
I know beyond a certain amount, eBay reports you to the IRS so I would assume I'd have to pay tax. The question is, how do I calculate the cost basis?
These items were worth close to nothing when given to me, but they were more of a gift at the time and not so much an inheritance. So if I were to sell them for, say, $5000 I would have to declare the entire amount as income?