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I’m not sure why you still aren’t understanding this. Chas863 explained it very clearly in post #3 with his baseball card example. And in post #4, you get all offended about that post. In post #9, I disagreed with you, and that really sent you over the edge. In post #10, you make it clear that you have no knowledge nor understanding of the hobby issue, nor why it might be applicable to the OP’s situation. In post #14, you demonstrate again that you have zero understanding of the hobby activity issue. In the rest of the thread, you simply resort to insults and insisting that I said something that in fact, I never said.
Why won’t you quote me where I said what you’re claiming? You’ve been challenged multiple times to do so, but you’ve steadfastly refused. You’re looking pretty silly at this point.
For the umpteenth time, I’ve NEVER said otherwise.
Ah, now you’ve decided to finally do a bit a research, but you STILL have it wrong. The issue that you initially reference is a determination over a five year period, not three. And one doesn’t have to wait five years for hobby rules to kick in. If applicable, the rules will apply from the very first year of operations. And the selling of “unrelated” products isn’t a separate issue. Whether selling unrelated products, or selling the primary products of one’s business, ANY activity can be classified as a hobby. Understanding the how and why of that is important. But you don’t get it.
It’s good that you did some research, but don’t confuse your five minute Google search with an actual understanding of the issue. As I said before, I’m happy to provide you with some free education if you’re serious about understanding this issue. It’s an important issue, and one that even somebody with 25 years in business might not know anything about.
My post was based on my own experience not a Google search as you imply. The hobby vs business is a three year profit determination not five as you state. So you are wrong again.
You so completely misunderstand what the OP is asking. You keep wanting to introduce hobby taxation which is not the question. You don’t get it and based on mod deleted posts, it sounds like this behavior is your standard online MO.
Last edited by COcheesehead; 04-25-2024 at 09:51 PM..
My post was based on my own experience not a Google search as you imply.
You’ve clearly demonstrated that you had no idea what the hobby rules are, and you continue to demonstrate that you don’t understand why they might be applicable to the OP. That’s OK, tax accounting is hard. Not everyone gets it.
Quote:
The hobby vs business is a three year profit determination not five as you state. So you are wrong again.
This is what I said, and I’m 100% correct:
Quote:
The issue that you initially reference is a determination over a five year period, not three.
Rerun your Google search on that issue, and this time, read to understand.
That you still don’t understand that is prima facie evidence that you don’t understand this issue. At all.
Quote:
You so completely misunderstand what the OP is asking. You keep wanting to introduce hobby taxation which is not the question.
You’re still not getting it, so I’ll ask just one more simple question - would it be possible for the IRS to determine that the OP’s soap selling activity, incorporated into his existing business, is in fact a hobby activity (like the baseball card example provided upthread)? If you get that answer right, you’ll finally be on your way to understanding this issue. But I’m not hopeful. . .
You’ve clearly demonstrated that you had no idea what the hobby rules are, and you continue to demonstrate that you don’t understand why they might be applicable to the OP. That’s OK, tax accounting is hard. Not everyone gets it.
This is what I said, and I’m 100% correct:
Rerun your Google search on that issue, and this time, read to understand.
That you still don’t understand that is prima facie evidence that you don’t understand this issue. At all.
You’re still not getting it, so I’ll ask just one more simple question - would it be possible for the IRS to determine that the OP’s soap selling activity, incorporated into his existing business, is in fact a hobby activity (like the baseball card example provided upthread)? If you get that answer right, you’ll finally be on your way to understanding this issue. But I’m not hopeful. . .
This isn’t a test, with my value determined by the answer. It’s straight forward business 101. A business can sell whatever they want. Why do you want to continue to break out a single product line? As long you account for sales and expenses in total, it does not matter. Spoken from a 25+ year business owner who made a boat load of money, sold the business and can sit back in retirement and smile at your answers.
This isn’t a test, with my value determined by the answer. It’s straight forward business 101. A business can sell whatever they want. Why do you want to continue to break out a single product line? As long you account for sales and expenses in total, it does not matter.
Reread post #3, because you’re still not getting it.
Quote:
Spoken from a 25+ year business owner who made a boat load of money, sold the business and can sit back in retirement and smile at your answers.
Everyone’s mighty impressed.
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