> > There is some hobby option I am
> > going to attempt but it's unclear how much it will help.
> Yeah, I noticed about two or three years ago, they added a section for "hobby income"
> which you can offset by "hobby losses", though I don't know if there are any dollar
> limits on that.
I just found out today from my tax specialist that it exists.
> I've been sticking income from google ads on my website in the "hobby income" box on
> my taxes to cover my ass just in case.
> As other people have said, the bottom line is net "gain". If your outgoing is higher
> than your incoming, then you don't owe any taxes. The problem, as you point out, is
> that you probably need to come up with some sort of numbers for your tax guy and if
> you get audited, the IRS will probably want you to come up with receipts or
> something. Which could be a problem.
I had extra expendable money in 2011 and blew a large amount on things not exactly DU related and then resold most of it in 2012 to get most of the money back. That alone made it show more incoming than outgoing for 2012, the problem is that most of the stuff, I bought in groups like 10 boards for $1,000 or whatever then sold some and some unsold and don't have exact records per board. It's a mess and I don't know how to divide it "according to the law".
> I know you said you don't want to do it, in case you change your mind, registering a
> business as a sole proprietorship isn't that hard. I did it in NJ about 10 years ago.
> I registered a business name (with the county, I think) and got a tax number from the
> state (which I think was my SSN plus some extra digits on the end or something). Then
> I opened a business checking account using that tax number. I think I eventually
> opened a paypal account using that tax number. Initially, I kept track of purchases
> (inventory) and sales on a spreadsheet, but later I got a copy of Quickbooks, since
> you don't really do any volume, you could probably stick to a spreadsheet. The
> biggest pain was quarterly sales tax payments on in-state sales. That sucked.
It's sole p that I'm getting taxed under. I'll see if there is an option for getting paypal under something not other than my SSN but I've never heard of such a thing. They seem preoccupied with avoidance of the IRS as much as the rest of us. It's fucked. I'm not so sure how the whole thing is even standing up.
> I just sent you some cash. Hopefully, it will help.