18 Aug
2011
18 Aug
'11
9:23 a.m.
> 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.
On Wed, 17 Aug 2011, Grant Stockly 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.
That's just because we are greedy and stubborn!
Taking out a loan to build the business and paying that off out of part of
the profits over 10 years is OK. Using all of the gross to bootstrap the
business and not having any NET profits for 5 is NOT. Even with the same
dollar numbers.
Folding a business at the first sign of poor profitability is OK.
Continuing to try while developing more new products is not.