Thanks - I think I mostly understand the business versus hobby difference. From the initial post, I am selling items that I would have considered 'personal items' - either I purchased them for myself, they were gifts to me or they were unsold and unwanted from a family estate. Have not purchased any of the items specifically for resale, but a few I 'collected'.
I have to file periodic state sales tax forms, I have a state DBA, and I do intend to benefit from the money from my sales. I definitely will have a profit from nearly every single item. I have devoted significant time every week to this effort for marketing, restoration, packaging etc. I have general expenses that are directly attributed to this effort, but not to a single item. This first year I do not have a 1099, but I will have a 1099 in the future. This effort will take several years and turn a net profit each year. However, if the capital gains go to one schedule and the unallocated expenses go to a Schedule C, then the Schedule C might have a loss each year.
Thanks for your advice!
