17 Aug
2011
17 Aug
'11
5:21 p.m.
On Tue, Aug 16, 2011 at 11:47 AM, William Donzelli <wdonzelli at gmail.com>wrote:
It happened to me. They wouldn't give up. Paying the $1000 or so in taxes
and interest was easier than fighting after about 6 months of
correspondance.
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.