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  • #31
    Originally posted by Broccoli1 View Post
    Another thing about the Hobby thing is that if the IRS decides that it is in fact a hobby you the owe them all of the tax money you didn't pay for those 3 years because you were calling it a business.

    That would suck. As for the other post I wrote I hardly understand what I said myself. But I have tried to get this whole thing right. I guess I'll never be legit until I get laid off from my regular job or just switch all together.

    Some interesting reply's here.

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    • #32
      Originally posted by Hardrock40 View Post
      That would suck. As for the other post I wrote I hardly understand what I said myself. But I have tried to get this whole thing right. I guess I'll never be legit until I get laid off from my regular job or just switch all together.

      Some interesting reply's here.
      That is really the extreme where someone is actually trying to write off hobby stuff and it is tax fraud 😁

      If your business just can't make it then you don't owe extra😳

      If you are doing side jobs and collecting money be careful- even cash transactions can come back to bite you if the person decides to 1099*you because his expense is a write off for his business. Thank god they put the brakes on mandatory reporting of every transaction over $600.00 😳

      * Although that is really only for labor if you worked a temp gig for someone, not service repairs etc etc.

      Have you sat down with an accountant or tax person to go over your situation?

      We are not tax people so for us, paying a guy to do it was well worth the $
      We tried our first year and it seemed easy but then we met with a guy, on a clients suggestion, and he saved us a ton of money.

      Good luck to you
      Ed Conley
      http://www.screamingbroccoli.net/
      MM252
      MM211
      Passport Plus w/Spool Gun
      TA185
      Miller 125c Plasma 120v
      O/A set
      SO 2020 Bender
      You can call me Bacchus

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      • #33
        Thanks Broccoli

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        • #34
          Originally posted by Broccoli1 View Post
          It was clear- jt was funnin' with the tank stuff



          No I wasn't.

          I'd also have a hovercraft (not those silly little hobby type, the Marine Corps amphibious assault type) and a fleet of M113's to patrol the compound, maybe a Bradley or two. Oh yea, a observation blimp as well. And a D-9 for road maintenance.

          J
          Some days you eat the bear. And some days the bear eats you.

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          • #35
            Originally posted by Broccoli1 View Post
            That is really the extreme where someone is actually trying to write off hobby stuff and it is tax fraud 




            Righto. People do try that.

            In todays environment there are a lot of large, multi national construction companies that have lost money for several years. They will never get classified as a "hobby". A lot of factors come into play.

            J
            Some days you eat the bear. And some days the bear eats you.

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            • #36
              Originally posted by Arizona Joe View Post
              What I wrote was,

              "This depreciation comes off the top line along with a whole bunch of other expenses thereby reducing your taxable bottom line. In essence Uncle Sam will pay for your equipment. "

              I thought it was clear that the money came from savings in taxes... unless you take the sentence out of context.




              Right, right up to the last sentence. "THAT" was out of context, and wrong.

              You were fairly accurate right up until you say the govt. will "pay for your equipment". Just flat wrong. Unless you are a phoney green enterprise, then the govt WILL pay for your equipment, payroll, executive bonus', the boat and the airplane/helicopters. Most of us don't fall into that category.

              Anybody in flyover country, working in a real business, pays for their own equipment period. The tax breaks you get are usefull, but thwey do not pay for your equipment.

              A deduction is still a net loss. No way around that, maybe neccessary, but a net loss at purchase.

              JTMcC
              Some days you eat the bear. And some days the bear eats you.

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