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You can have losses for a certain number of years, then the IRS starts calling it a hobby and then you lose some deductions.
You can’t escape........

(05-28-2018, 02:32 AM)EightFingers Wrote: [ -> ]You can have losses for a certain number of years, then the IRS starts calling it a hobby and then you lose some deductions.
You can’t escape........

If you use the 1099, claiming losses three years in a row triggers an audit. At least according to my CPA. I admit the IRS scares the crap out if me. I have a receipt, hard copy and electronic for every deduction I claim. In the really good years I will claim mileage but most years I don't because it's a pain to prove.

(05-28-2018, 02:32 AM)EightFingers Wrote: [ -> ]You can have losses for a certain number of years, then the IRS starts calling it a hobby and then you lose some deductions.
You can’t escape........

There is some truth to that. My CPA told me you need to make a profit 3 out of 5 years, otherwise it throws up red flags.

I dont play games. I pay the self employment tax. 11 years an no issues ever. 

Really all I do is check my expenses in Nov. If there is room, ill buy up supplies in Dec to close the gap....but I am sure any smart business does that, not really against the rules by any means.

And there you have it.  The reason why I rarely sell my work.    Most of my pieces are passed on as gifts to friends and family or donated for charity raffles.  I might let someone pay for materials on a larger project, but I won't make money on the pieces... so nothing to claim, nothing to report.    No need for the IRS.  They scare me too. 

I am just wondering here with this now with the tax.

I do not make over I believe $400 maybe $500 a year in sales.

Who makes over $1000

Or more then $2500

Or more then $5000

in sales every year?  I would think it depends also on how much you gross in total revenue before the sales of bowls and such would even be considered.

Packer guy, that’s what I do as well. Basically, I call it the big spend down.

(06-15-2018, 12:05 AM)EightFingers Wrote: [ -> ]Packer guy, that’s what I do as well. Basically, I call it the big spend down.

Yea, its a small thing. If its 2 or 3k, that's only a couple hundred in savings, but if its stuff I would buy in the coming years (like consumables, finish, lumber, boxes, etc) why not. 

Gotta be careful though, a few years back I spent a bunch on different stuff, and the next year it was the 4th quarter before I had to buy some of the stuff....so its a double edged sword. 

I have a second storage unit now strictly for lumber, so if its not below zero in Dec and prices are right, I can load it up. 

If you’re URL DELETED, you’re entitled to the same tax-free Personal Allowance as someone who’s employed.
For the 2021-22 tax year, the standard Personal Allowance is £12,570. Your personal allowance is how much you can earn before you start paying Income Tax.
If you earn over £100,000, the standard Personal Allowance of £12,570 is reduced by £1 for every £2 of income you earn over the £100,000 limit for the 2021-22 tax year.
However, if you have two jobs and one is self-employed, things are a little more complicated

(06-21-2022, 01:52 AM)janie2 Wrote: [ -> ]If you’re URL DELETED, you’re entitled to the same tax-free Personal Allowance as someone who’s employed.
For the 2021-22 tax year, the standard Personal Allowance is £12,570. Your personal allowance is how much you can earn before you start paying Income Tax.
If you earn over £100,000, the standard Personal Allowance of £12,570 is reduced by £1 for every £2 of income you earn over the £100,000 limit for the 2021-22 tax year.
However, if you have two jobs and one is self-employed, things are a little more complicated

I know 8fingers lives far away in Hawaii , but I’m certain it’s still a State of America. 

Any discussion of British Sterling is pretty moot.  



8F - the $200 fee is pretty reasonable for an hours accnt. advice.   AND it’s deductible off of your gross revenue, so your customers are paying.