Do you have a hobby? Beading? Macramé? Painting? At a certain point, if you are starting to sell your handicrafts and you are keeping records, you might be moving from a hobby into a business.
There are certain criteria that a business needs to meet, some of which are: that it should make a profit some years (three of the last five tax years) and whether you’re trying to make money from it.
If your hobby is turning into a business, that means that you can start deducting qualified business expenses, such as materials and office costs. That can be a pretty big deal, depending on how big your operation is.
If you’re interested in learning more, we’d be happy to sit down and talk with you.