Paying self-employment tax on consigned sales - Printable Version +- Woodnet Forums (https://forums.woodnet.net) +-- Thread: Paying self-employment tax on consigned sales (/showthread.php?tid=7339779) Pages:
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RE: Paying self-employment tax on consigned sales - EightFingers - 05-28-2018 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........ RE: Paying self-employment tax on consigned sales - Angus - 05-28-2018 (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. 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. RE: Paying self-employment tax on consigned sales - packerguy® - 05-28-2018 (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. 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. RE: Paying self-employment tax on consigned sales - BrokenOlMarine - 06-11-2018 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. RE: Paying self-employment tax on consigned sales - Arlin Eastman - 06-14-2018 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. RE: Paying self-employment tax on consigned sales - EightFingers - 06-15-2018 Packer guy, that’s what I do as well. Basically, I call it the big spend down. RE: Paying self-employment tax on consigned sales - packerguy® - 06-15-2018 (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. RE: Paying self-employment tax on consigned sales - janie2 - 06-21-2022 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 RE: Paying self-employment tax on consigned sales - Cabinet Monkey - 06-21-2022 (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. 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. |