A BANNER YEAR!!

[jcm71]

Just got our tax statement back from our accountant, and I am proud to report that my business, The Well Turned Pen had a banner year (tongue in cheek). Not much by other members' standards, but nearly $9000 in sales last year. After deductions, which included vehicle expenses, commissions and fees, professional services, office expenses, supplies, miscellaneous, and office use of home(yes it is legit), I am proud to report, nay I boast, that my net profit was $73. Easy Street, here I come!!

 

[Jgrden]

Yer buyin'

 

[SteveG]

I guess you are now all about "movin' on", as you leave many of the rest of us eating your dust :biggrin::doctor:

 

[Haynie]

You da MAN!!!

 

[jttheclockman]

Yea so now what??? You are not going to talk to us any more you MoneyBags:frown:

Don't worry it does get better ( I think) Someone told me that once. Thought i would pass it on

 

[penmaker1967]

i thoght my 9.00 profit was good.LOL glad u made a little anywaybetter that loosing a little or should i say alot like i have done the last few years till this year.

 

[MarkD]

So what did you wife spend the profit on? :biggrin:

 

[mywoodshopca]

Just got our tax statement back from our accountant, and I am proud to report that my business, The Well Turned Pen had a banner year (tongue in cheek). Not much by other members' standards, but nearly $9000 in sales last year. After deductions, which included vehicle expenses, commissions and fees, professional services, office expenses, supplies, miscellaneous, and office use of home(yes it is legit), I am proud to report, nay I boast, that my net profit was $73. Easy Street, here I come!!

BUT you saved a fortune in paying in taxes :biggrin:

 

[gbpens]

Your $73 profit probably translates into $7300 of FUN! This year you can double your fun.

 

[raar25]

How long have you been in business? Consider that I dont think Amazon earned a profit for over ten years you doing awesome..

 

[Wood Butcher]

Hmmm, looks like $8927 for the govt. paperwork and $73 for you. That assumes that you don't have health care costs, pay sales tax on what you buy with the $73 and a few other overhead things that make life worth the effort. I'm thinking it's a good reason to consider it a hobby and write it off as fun....like fishing would be.
WB

 

[jcm71]

Hmmm, looks like $8927 for the govt. paperwork and $73 for you. That assumes that you don't have health care costs, pay sales tax on what you buy with the $73 and a few other overhead things that make life worth the effort. I'm thinking it's a good reason to consider it a hobby and write it off as fun....like fishing would be.
WB

Oh, definitely a hobby and a lot of fun. Now that I'm about to retire from teaching, I'll be able to spend more time on the marketing side and hopefully increase the net. If that stops being fun, well I'll just rachet back and be happy with $73.

 

[Tom T]

Great post. It seems I need to keep my day job.

 

[Old Lar]

Hey, a hobby that you can break even on and even make a little. That is a good thing. I have sold about half of that in the last couple years and have been happy to have a hobby that pays its way.

 

[Smitty37]

Hmmm, looks like $8927 for the govt. paperwork and $73 for you. That assumes that you don't have health care costs, pay sales tax on what you buy with the $73 and a few other overhead things that make life worth the effort. I'm thinking it's a good reason to consider it a hobby and write it off as fun....like fishing would be.
WB

Oh, definitely a hobby and a lot of fun. Now that I'm about to retire from teaching, I'll be able to spend more time on the marketing side and hopefully increase the net. If that stops being fun, well I'll just rachet back and be happy with $73.

Dodn't say that too loud, you can't deduct a lot of things against a hobby business that you can against a profit seeking business.

 

[lyonsacc]

Agree w/ Smitty.

When you are talking about taxes, filing a Schedule C, and saying it is "definitely a hobby" you could find yourself in trouble. A "hobby" has a specific definition in the tax code and the result for you would likely be an increase in tax owed.

Yes, the chance of that comment causing any issue is amazingly small, but don't risk it. I've seen audits turn toward the bad side when little facts like that get discovered.

 

[jcm71]

Agree w/ Smitty.

When you are talking about taxes, filing a Schedule C, and saying it is "definitely a hobby" you could find yourself in trouble. A "hobby" has a specific definition in the tax code and the result for you would likely be an increase in tax owed.

Yes, the chance of that comment causing any issue is amazingly small, but don't risk it. I've seen audits turn toward the bad side when little facts like that get discovered.

Thanks for the advice. Perhaps "definitley a hobby" was a poor choice. I do have a business license and regularly pay sales tax collected to the state, so in that regard it is a business. Mentally, I treat it as a hobby, a way to unwind and have fun.