There is actually a facts and circumstance test. However, I don't think anyone wants to hear about IRS regs on this forum. Moral of the story is have fun, business or hobby, with clubmaking.
Brian -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of bob boone Sent: Friday, December 20, 2002 5:54 PM To: [EMAIL PROTECTED] Subject: RE: ShopTalk: What is it worth? I think that when it is considered a business, losses are deductible, but hobby losses are not. If after five years, I believe and you have not turned a profit, it is a hobby! -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Steve "Cub" Culbreth Sent: Friday, December 20, 2002 3:38 PM To: [EMAIL PROTECTED] Subject: Re: ShopTalk: What is it worth? Burgess, You have to explain how the IRS disagrees with me when you are even agreeing that the hobbyist = businessman, especially if he sells for a profit; and labor charge is profit. If you sell your hobby items for a profit, you have to report that income. You are also allowed to deduct the expenses necessary to produce the item. So no matter how you cut it, the IRS expects your tax. They don't care about business licenses. That is left up to the laws in your local. Sales, other than occasional (my car, my lawnmower, etc..), require licenses in most places I know. I'll also have to disagree with your assessment of what the IRS calls a hobbyist, at least partially. I've never seen the word love in anything the government produced ;-) Money made from other than occasional, casual sales, = tax liability (period) Cub > >The IRS > >recognizes hobbyist who sell for a profit, and makes a differentiation in > >deductions > >for them. They also expect them to pay taxes. Thus the hobbyist becomes a > >legit businessman and I have no problem with that. > > The IRS disagrees. Hobbyist != businessman. > > Burgess > >
