Paying self-employment tax on consigned sales
#20
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........
VH07V  
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#21
(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.
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#22
(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.

Once Favre hangs it up though, it years of cellar dwelling for the Pack. (Geoff 12-18-07)  



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#23
And there you have it.  The reason why I rarely sell my work. 
Big Grin  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  No need for the IRS.  They scare me too. 
Raised
Jim in Okie
You can tell a lot about the character of a man -
By the way he treats those who can do nothing for him.
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#24
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.
It is always the right time, to do the right thing.

Hi, I'm Arlin's proud wife! His brain trma & meds-give memory probs and has pain from injuries, but all is well materially & financially.  
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#25
Packer guy, that’s what I do as well. Basically, I call it the big spend down.
VH07V  
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#26
(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. 
Laugh

Once Favre hangs it up though, it years of cellar dwelling for the Pack. (Geoff 12-18-07)  



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#27
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
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#28
(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.
Yes
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