Does anyone run their quilting as a business and deduct all their fabric?
#31
Super Member
Thread Starter
Join Date: Jan 2011
Location: Small town in Northeast Oregon close to Washington and Idaho
Posts: 2,795
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.
#32
Senior Member
Join Date: Oct 2011
Location: Iowa
Posts: 816
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.
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.
#33
Super Member
Thread Starter
Join Date: Jan 2011
Location: Small town in Northeast Oregon close to Washington and Idaho
Posts: 2,795
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.
#34
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
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
#35
Super Member
Join Date: May 2011
Location: Pacific NW
Posts: 9,390
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).
#36
Super Member
Join Date: Feb 2011
Location: Lumby, British Columbia
Posts: 2,769
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.
#38
Super Member
Join Date: Mar 2007
Location: Here and there
Posts: 1,669
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
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
#39
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.
#40
Super Member
Join Date: May 2011
Location: Pacific NW
Posts: 9,390
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.
Thread
Thread Starter
Forum
Replies
Last Post