A couple of years ago I sold a collection of dolls for a friend entering a nursing home. The IRS wanted to charge me for the total value of all sales and postage and handling charges. I tried to explain that although I am not set up as a business I am selling collectibles (mine and hers in this case) and that a doll or item that cost me $400 when I purchased it (or she did) and I sold it for $500 should represent $100 in profit. In other words, she didn't MAKE/EARN $500 for the doll. From what I understand the IRS considers collectibles a gray area and doesn't handle it as a sub par profit. Isn't it like a store that spends $50 for a sweater and sells it for $150 only making $100 minus other operating costs.
