Buisness Question

[FISHUNTER]

If you make and are selling ...lets say "fishing rods" for example at your home for just a little side money aside from your full time job. At what point (if any) are you considered a buisness that needs to report earnings and pay taxes on this side income?

[Playa]

If you make and are selling ...lets say "fishing rods" for example at your home for just a little side money aside from your full time job. At what point (if any) are you considered a buisness that needs to report earnings and pay taxes on this side income?

There is no political discussion here. There are other "campfires" on the web for that.



























All income is reportable income. Its my personal belief that the IRS would tax you based merely on the idea of income not just the realization of that income.

[Deb]

Plus sales tax.

[RR 314]

If you make and are selling ...lets say "fishing rods" for example at your home for just a little side money aside from your full time job. At what point (if any) are you considered a buisness that needs to report earnings and pay taxes on this side income?

Uncle Sam wants his cut on the first dime you make! Income is income.

[Brazos Hunter]

A penny "Uncle Sam" does not know about is a penny well earned.

~Unknown

[flywise]

If you make and are selling ...lets say "fishing rods" for example at your home for just a little side money aside from your full time job. At what point (if any) are you considered a buisness that needs to report earnings and pay taxes on this side income?

Dont worry about it, just take cash sales

[systemnt]

If you find a dime on the sidewalk, you are supposed to pay income tax on it.
Answer your question?

[dustoffer]

[/B]

Dont worry about it, just take cash sales

And, hope someone you've ticked off doesn't turn you in, plus, you have to look at yourself in the mirror each morning.

How would you feel if your son asked you if you paid taxes on the money you earned selling rods? Would you lie to him?

[viper3853]

http://www.window.state.tx.us/taxinfo/sales/questions.html

[systemnt]

How would you feel if your son asked you if you paid taxes on the money you earned selling rods? Would you lie to him?

Well first I'd be a little freaked out and say something like "WHEN YOU LEARN TO TALK!!!???! AND HOW DO YOU KNOW ABOUT TAXES!!?? You just turned two!!!" ..

[FISHUNTER]

Thanks guys....thought there was some lea-way in there some where for small time private sales etc. So 8.25% on every fishing rod sold to stay within the law?
So does the IRS just assume everyone on craiglist is going to report their "used dining table" sale on their tax form?

[Eagles1181]

Technically you have to pay on anything you earn. However, you also get to deduct any expenses. This includes any materials, advertising, space (do you have a work shop, if so the cost associated with that space is deductible)? Do you answer business calls on your cell phone? Then at least a portion of your cell phone bill is deductible. A little side business like that can often make you more in tax savings than in income, and if done correctly it is all legal. You just have to get your head around the fact the company is loosing money.

Eagle

[systemnt]

Thanks guys....thought there was some lea-way in there some where for small time private sales etc. So 8.25% on every fishing rod sold to stay within the law?
So does the IRS just assume everyone on craiglist is going to report their "used dining table" sale on their tax form?

That's the idea.
If you are going to do anything where you are going to be advertising your self as a business providing a product.. you might want to do it the right way.
Get an LLC and start doing the taxes..

[Redneck Archer]

a freind of mine does some IT stuff on the side to fund hobby's. lets say hunting.

he accepts cash. (only cash). purchases hobby stuff with cash and only cash and most of it used (which isnt claimed either).

He said that him and his son sleep fine at night...

BTW: I sold my guns at a gun show a few months ago because I needed to pay for my lease!



My "freind" also said that he only lies to people who lie to him first...

[Eagles1181]

Thanks guys....thought there was some lea-way in there some where for small time private sales etc. So 8.25% on every fishing rod sold to stay within the law?
So does the IRS just assume everyone on craiglist is going to report their "used dining table" sale on their tax form?

In Texas you get to sell a very limited number of items tax free. I think it is one or two every couple of months. As far as selling dining room table, that is a little different. Most of those are sold at a loss (Bought new for $1000 sold used two years later for $500). That is not income. If you bought a used set for $250 because it was beat up, refinished it and sold it for $500, that is income, but only $250 is taxable (minus refinishing supplies).

Eagle