"Activity improving collection"
I have read several places that a C&R can do some borderline selling things like buy 8 guns of a model, keep the best and resell/trade the others as long as it isn't for a profit that is taken out as earnings.
For instance(and don't nit pick the prices quoted as this is an example, not a plan), I buy a crate of 8 "hand select" Mosin-Nagants for $99.95 +shipping for a total of $840, keep the best one or maybe two if two are good, sell the other six(rusted, non-match, bad barrel, etc) for $125 each or $750. I put this $750 back into my "C&R Fund" that is kept separate from other monies for future purchases or go out and buy some other C&R guns, then I am fine.
Some have said I can only resell at cost or less for this type of activity. $840/8 = $105.
Is anyone doing this sort of selling/trading? Does anyone know of a case of someone having trouble for this type of behavior? Anyone have an ATFE clarification of this issue?