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A HERETIC I AM

(24,815 posts)
3. In the pages you read.....
Sat Jan 7, 2012, 11:56 PM
Jan 2012

did you read if it said that any income generated from a "hobby" had to be reported? Did you see if there was a threshold? $1000? $1500? And what test did they give (there is usually examples or tests provided on those IRS publications) to decide if it had to be listed as a business instead of a hobby?

I can think of an example with something I am interested in;

I am fascinated by Live Steam, smaller scale (1.5" to the foot) Locomotives. If I ever hit the lottery, I would buy a milling machine and the other tools needed to construct one. If I got to the point that I could turn out say - drive wheels for a 4-6-6-4 Challenger (just google that to see what I am talking about) quickly and sell them on the internet, if I only sold one or two or maybe ten a month, it is no big deal. But when it gets to the point that I am selling 500 a day, for instance, it adds up. It has gone beyond something I did for 3 hours in the evening and is now a full time vocation.

I am sure you're way ahead of me here, however.

Unfortunately, I am by no means experienced in tax rules for small businesses, but I would think that at some point, if you have a hobby and it makes you money, sooner or later it becomes more of a business than a hobby.

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I'm not an administrator, elleng Jan 2012 #1
OK.. this is a general question anyway OKNancy Jan 2012 #2
In the pages you read..... A HERETIC I AM Jan 2012 #3
I had a similar question a couple of years SheilaT Aug 2012 #7
And Elleng, as far as an admin goes, I don't think this group needs one... A HERETIC I AM Jan 2012 #4
Gotcha, Heretic. I agree. elleng Jan 2012 #5
I agree. We do not have a host currently. I don't think it's necessary. Common Sense Party Jan 2013 #11
Yes Obbiously Billy Patterson Aug 2012 #6
found reinfinland Jan 2013 #8
Welcome to DU! William769 Jan 2013 #9
Indeed. It's fun to welcome a newbie to DU. In_The_Wind Jan 2013 #10
Latest Discussions»Culture Forums»Personal Finance and Investing»Can we ask tax questions ...»Reply #3