Originally Posted by
jcrow
What about all the people who are self employed? Does this mean they are red flagged as well? I'm self employed. I don't claim thousands of dollars on my quilts. I claim the loss of what the quilt cost, including long arm quilting and driving to buy the fabric, and the notions I use to make the quilts...
According to the rather scary posts here, yes, they probably wouldn't do well as a self-employed person.
Don't worry about it. If you are keeping tabs, keeping receipts, and doing your taxes legally, do not stay up all night worrying. Some people are better off if they aren't self-employed as they don't have the personality for it.
I also wondered why so many objected to this. People who are self-employed do get to take off some of their expenses, but of course, not everything.
If it came about to be a problem that you aren't making money after 3 years, just don't declare some of your expenses for a couple of years so it looks like you made a profit-- if only $10 to keep the qualifications as a business.
It sounds like your MIL knows what she is doing. And she knows your situation better than any of us. I'd let her be my guide.