[Zedder]

I can't speak for the US regulations, but here in Canada the regulations that we are talking about apply to the sale or "real personal property" - cars, boats, antiques, etc. and the time restraints are imposed to discourage "flipping" of personal property for income purposes without paying the associated income tax rates. When researching this last year, one interest loop-hole I found was for parts sales. Any real property purchased is assumed to be purchased for a minimum of $1,000 regardless of what you paid for it. Capital gains or income generated is therefore calculated on the selling price minus $1,000. So, you can basically sell all of the parts that you like without tax implications as long as the selling price is less than $1,000. I don't sell parts, so it makes no difference to me, but those who sell via ebay can have a nice little side income coming in.