Good questions, I'm glad I'm not the only one pulling my hair out:)
I'm going to make WoW and Diablo 3 taxation into a discussion topic on my blog to highlight the perplexity of tax law. It's not just selling gold that has issues, some raid groups also get paid to carry noobs through raids. These types of nuances I will flesh out in all the painful details, without taking up more space in this comment section haha.