.22Hepburn wrote on Jan 8
th, 2014 at 4:08pm:
Don't forget that if you sell a firearm at one of the auction houses, you will receive a 1099 form with the sale proceeds. I assume that this means you have to report the sale proceeds as income, ouch. 
 Absolutely !! 
I knew a fellow who collected antique chinaware like fancy cups and saucers ; and had amassed a considerable estate. 
He had at least two auctions to liquidate his collection, and the gross was around $1 million. 
He got clobbered in taxes, and told me if he had known what was going to happen, he would have sold his stuff off privately.  
On the other hand, a good friend had a collection of about 100+ guns, which were mostly modern. 
He negotiated a deal with an auctioneer to liquidate the collection over several auctions where no one sale total was to equal more than $10K. 
He also stipulated to be paid in CASH. 
He got away with it; but I don't think it would have worked if he wouldn't have had such a sizable collection.