jcrow

My MIL is a licensed tax preparer. She has a business out of a mortar office. She has been doing this for forty years. She knows all the laws. She is one of the few tax consultants that can go before the IRS. Not every tax consultant has that ability. Usually you are on your own when you get audited. And I'm not declaring my house, only a part of my sewing room. She explained all that to me. I think everyone thinks I'm writing off every item I buy that has to do with quilting. I'm only writing off the quilts I sell. And I do take a loss with every quilt when I add in the hours I spent making them. I use $15 hour for making the quilt, which isn't very much for something personally made compared to store bought.

Skittl1321

I think if you are taking a loss with every quilt you sell, after 5 years you are going to be classified by the IRS as a hobby. A business makes a profit.

You can take your chances, but if you aren't making a profit, or working up to making a profit, it isn't a business.

jcrow

I haven't been doing this for five years. Some businesses are in the red for years until they make a go. I don't mind selling my quilts for the price I sell them. I am retired and do a lot of quilting. Like the gal said, she donates some of her quilts and writes it off for charity. Maybe that's what I should do. I've sold every quilt I've advertised within 10 days so I'm doing fine. I'm just not making a profit. And that's fine with me. I don't lose money if I don't count my hours, but if I don't count my hours, I come out ahead. My MIL says what I'm doing is fine, so I'm going with her. She's done my taxes for 17 years and we've never been audited or had any problems. My question wasn't about the IRS to begin with. I meant to ask if anyone was selling their quilts instead of giving them away or keeping them.

CarolinePaj

Hi All,

Don't know much about this as I live in the UK..... but over here if you run a business from home you can claim the grand amount of £3.00 ($4.50) per week against your profits for using you home. You cannot claim a telephone unless it is only used for business and this is the same for all other equipment.

The only thing I know for sure is that whatever government it is.... it will get ya!!!!!!!

Hugs

Caroline

Peckish

Oh. Well, you went into such detail about expenses and deductions it's no wonder you were misunderstood.

I've thought about selling quilts, but I don't think I could break even. People around here aren't willing to pay for just the cost of the fabric, let alone my labor (no matter how cheap I price myself).

My time

There are many businesses and large corporations that never make a profit. I guess you weren't clear in the beginning because geez louise you were certainly getting negative feedback. Sounds to me you know what your doing. But to answer your question, I don't have a business so no write offs for me.

kat112000

Wow this sure became a big can of worms very quickly! Good for you to have the ability to sell your quilts! I don't think I am talented enough to sell mine (low self esteem)!

FroggyinTexas

Here is the deal! I am mortally offended by the ads that say, "I owed the IRS $14,000 and had to pay only $2,000." Someone has to pay for the highways, the hospitals, the fire and police departments, someone to inspect the water supply and run the Food and Drug Administration. I don't want the government to do less than it is doing now. I want it to do a better job of enforcing the current regulations. I expect everyone who gets the benefits to cheerfully pay for them. My attitude as an American citizen is this: "How much do you want to charge me to live here? Whatever it is, getting to live here is worth every penny I pay in taxes" froggyintexas

oldbalt99

Years ago when I did my taxes after fair season I deducted only what I made to sell. My gagets, rotory cutter, thread and the like were not included. I use those for personal use also. None material cost for the fair were more critical than fabric.

Peckish

I understand your thinking completely, but after working for an attorney that represented a group of investors who were reamed by the IRS, I always wonder how much was originally due to the IRS and how much of it were all the penalties, which can be quite harsh.