16 Aug
2011
16 Aug
'11
12:47 p.m.
It's almost as bad in the US. ?They don't come
in and make you install saw
guards, but if you don't have a tax attourney they will claim that anything
above a loss can't be a hobby and is self employment income.
A Nascar team or horse breeder can be a (profit generating) hobby, but
according to the IRS making kits has a profit motive even when it is only 5%
of your claimed income.
Lets be realistic here.
The IRS does not have the manpower to go chase after someone that is
making a few thousand on the side as a hobby business. They have
bigger fish to catch. And if someone with a little "hobby business"
does get audited, it is extremely easy to bury the profit with
writeoffs.
I know quite a few people in the US, and even some in the UK, that
have turned a basement electronics hobby into a business, and somehow
everyone seems to be cool with the government and make money.
--
Will