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Post by jon carman on Oct 30, 2011 12:05:09 GMT -6
This is a link for those of us operating in a grey area. I was there for a couple years, but decided to go all in. The state defines it a little different for sales tax, but you almost need a CPA to figure it out. Basically for IRS, if you have a potential profit in mind you are a business whereas with the state, it is more of a sales thing up to a certain dollar amount. I even found the state has a "use tax" for items purchased online from out of state that I guess the user is supposed to pay. Either way it sucks, but something to think about when breeding and selling, flipping, or whatever. Moral of the story, research and do what you think is right for your situation and the law. If you get an IRS audit and there are a couple thousand dollars coming in and out of an account all the time I am sure that is a red flag, a few hundred, probably no problem. dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2009/03/hobby-or-business-tax-issues-for-both.html |
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Post by glenoweth on Oct 31, 2011 8:43:57 GMT -6
why i only do cash for now lol.. i have not really turn no profit yet though. still in the neg.
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Post by kyangelsncorys on Oct 31, 2011 9:52:28 GMT -6
i feel your pain there Glen, im so far in the red with this new room its going to take alot before im in the blk.
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Post by jon carman on Oct 31, 2011 9:55:43 GMT -6
Same here, if I havent turned a profit by 2020 I will start breeding minnows for bait.
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Post by kyangelsncorys on Oct 31, 2011 10:01:32 GMT -6
im no where near as big and as nice as Jon`s set up but i still have a ton invested in this room. i figure if i make enough to pay our lite bill every month and take the wife out to eat then any extra will be gravey. plus it gives me something to do everyday that i enjoy.
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Post by ree123 on Oct 31, 2011 10:57:05 GMT -6
Excellent reading, references, and links ! Thank you Jon. My room is solely for enjoyment. I have never had a profit, but then I have never worked it for a profit. I have to many other pokers in the fire in my life now. After all the kids are on their own and I can find some more free time, things might change and this info. will be extremely valuable to me. For now, I am a large scale hobbyist.  Sometimes, with luck and a few extra hours of effort, I have lots of fish to sell, then @ other times, I have less time, and find myself just maintaing a lot of tanks just for personal fun/enjoyment. Great find Jon ! |
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Post by davidtcb1 on Oct 31, 2011 18:27:52 GMT -6
Same here, if I havent turned a profit by 2020 I will start breeding minnows for bait. lol |
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Post by kyangelsncorys on Oct 31, 2011 22:34:35 GMT -6
Rick my youngest son just moved to louisville and is a freshman at U of L so now all my kids are out of the house . now you see why im building my room.
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Post by ree123 on Oct 31, 2011 22:44:23 GMT -6
I understand. I built my room close to 20 years ago and it has evolved over the years as I figured out what all I did wrong in the beginning, and I still have more room for evolvement. Just not enough time. Someday I will be in your shoes, Mike.
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rinat
FORUM PARTICIPANT
Posts: 50
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Post by rinat on Jun 23, 2019 7:29:39 GMT -6
i think hobby is more important than buisnes
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Post by markina on Aug 4, 2019 22:40:30 GMT -6
Business is one of the main occupations in a market economy, a source of economic and social development of society. Covers production, commercial, consulting, banking and other areas of activity.
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Post by rinat123 on Aug 9, 2019 14:56:52 GMT -6
it is more of a sales thing up to a certain dollar amount. I even found the state has a "use tax" for items purchased online from out of state that I guess the user is supposed to pay.
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