It may seem far-fetched to call a personal sale as an investment, but that is the section this type of income is determined.
It isn't earned wages or self-employment.
It isn't Interest you earned on a savings account.
It's "Capital Gain" when you sell something and the money get for selling that item is more than what you paid for it.
People don't report these sales often, because usually the items they sell, sell for less than what they paid to purchase the item, such as when people have garage sales.
But when something is sold and results in a gain, the IRS wants their share.
If the value of the gift from work was included in this person's income (included in wages) then you can use that amount as the cost/basis/value in order to compute the gain (or loss).
If the gift was something worth $100, and $100 was added as wages in Box 1 of that person's W-2, only a sale of more than $100 would be reported as a gain.
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