search  current discussion  categories  business - taxes 

hobbyists/taxes?

updated tue 16 sep 03

 

primalmommy on sat 13 sep 03


Ric Pierce wrote:

>Only a few things piss me off, 1) teaching personell who have seemily
unlimited resources to apply to their>personal projects, 2) potters who
call themselves hobbyists to avoid paying the taxes and other costs that
I>have to, 3) potters who blame somebody else for their lack of success
and 4) people who arbitarily redefined>terms that have been in common
usage for ages.

I guess I see #1, though whatever bennies people work out with their
jobs is kind of not my business.. around here things are getting skimpy
even for academics.. and public school teachers are buying their
students crayons out of their own pockets.

#2, though, bewilders me. When I was a hobbyist I had no tax number and
had to pay full retail price for clay, kilns, you name it. I couldn't
write anything off, either. Becoming a business has saved me a bundle.
Most of my sales are on the internet to other states (no state sales
tax).

#3 kind of reminds me of the sour grapes in #1... and I am curious which
words are being redefined in #4?

Thought provoking stuff, at any rate..

kelly

_______________________________________________________________
Get the FREE email that has everyone talking at
http://www.mail2world.com

Lois Ruben Aronow on sun 14 sep 03


>#2, though, bewilders me. When I was a hobbyist I had no tax number and
>had to pay full retail price for clay, kilns, you name it. I couldn't
>write anything off, either. Becoming a business has saved me a bundle.
>Most of my sales are on the internet to other states (no state sales
>tax).

I don't know how you got discounts, as most places charge MORE for
commercial accounts. I'm having a hell of a time right now renting a
cargo van for a show, as they all want DOUBLE, which is the commercial
rate. I'll probably just do it on my personal account and pay the
sales tax.=20

It doesn't have to do with discounts or avoiding sales tax. As far as
taxes go, I need too provide a accounting to either pay taxes on my
profits, or write off my losses. Although if you have a tax number
(which is usually your SS#) you can avoid paying sales tax on business
related goods and services. BUT - it also means you MUST file to pay
sales tax collected.

The IRS loosely allows you to have losses for approximately 3 years,
which you can write off. After that, they expect you to either break
even or show a profit. After that, they likely hood of an audit
increases dramatically. They love to go after small businesses.




************
www.loisaronow.com
=46ine Craft Porcelain and Pottery
New Work for Summer 2003
New Show and Retail information

pdp1@EARTHLINK.NET on sun 14 sep 03


Dear Lois, and all...

A little fun maybe...amid...a few little mentions...


----- Original Message -----
From: "Lois Ruben Aronow"

(with an arrow'd quote retain'd, from Kelly I think? , from
before, as...)


>#2, though, bewilders me. When I was a hobbyist I had no
tax number and
>had to pay full retail price for clay, kilns, you name it.

Why? One may make deals whether a 'hobbiest' or not...one
may elect to 'think' and communicate with people, whether
one is a 'hobbiest' or not.


LIFE is 'deals', made by intent or default...it goes on
forever...


> I couldn't
>write anything off, either. Becoming a business has saved
me a bundle.

I understand...


>Most of my sales are on the internet to other states (no
state sales
>tax).

Although the Buyer, if a Business, may be asked to pay a
'Use Tax' for items they have bought as came from out of
their state's sales tax schemes.

(then)

(Lois)
I don't know how you got discounts, as most places charge
MORE for
commercial accounts.

(me) I have never heard of this...chargeing 'more' for a
comercial account?
Makes no sense!

Nor are 'accounts' allways necessary. One may simply do
Business as Cash-and-Carry...or Business Check and Carry,
or...why have an 'account' unless you have a use for one
somehow? The 30-60-90 day 'Billing' and so on...?

(Lois)
I'm having a hell of a time right now renting a
cargo van for a show, as they all want DOUBLE, which is the
commercial
rate. I'll probably just do it on my personal account and
pay the
sales tax.



(me)

Maybe you found the 'answer', oragmaticly, in your so-far
survey of rates?

Too...Since when is there 'sales tax' on renting something?

Is there? Maybe I missed that...!

Or...

Again, makes no sense to my experience, but...

Too...when going in TO ask about 'rates', or 'prices', one
may simply ask what the respective catagories of rates or
prices are, then elect to be in the Catagory as favours your
interests in the matter. I am not shy about that at all. I
get them to tell me or show me the catagories of the
'rates', and then I tell them which Catagory I am in.

Or, I sometimes just cut to the chase (and knowing my
subject in advance in order to evaluate or negotiate further
their 'amswers',)and say, "Look, whatever the best rate IS,
that is what I want. If you need to hear I am a 'Fireman', a
State Senator, a minority, a retired federal employee, a
contractor, or the bosses nephew, let's just say I am
whatever you need me TO be and lets get on with it."

Often enough...they do (accept that)...and we do ( get on
with it...)...sometimes they are amused and delighted I am
not just another complaiscent schmuck or gumper...it cheers
them up and they want TO give me a consideration.

I would too if I was them.One gets weary of complaiscent,
wan, abstract gumpers.

Or too...I call up (maybe someplace I never did business
with before) and say, "Hello...look, I been very VERY happy
with your product-service/whatever the hell it is, in the
past - you have allways taken care of me very well, and made
sure I was in the preemo 'good guy' catagory. This time, I
need 'this', are we good to go like usual?"

And usually...we are...(or as may need a few finesses or
reiterations TO get it to where I want it to be.)

If not, I go somewhere else, or I just bite-the-bullet.

Sometimes it takes more schmoosing, more cross examination,
digressive instruction or suggestion or choices for
them...as, (You make it X-Dollars like our usual
arrangement, or else why should I bother spending my dough
here? - or whatever...

Sometimes I reming them that I am the fellow as pays "cash"
and has no use for 'receipts'...

One may be deferential to the specific situation and
circumstance and so on.

It is a 'Jazz thing'...not pedantism and rote.

Too, some businesses, some people, some beurocracies, you
just cannot 'do' business with. Or other than them screwing
you like they screw everyone else...


(Lois)
It doesn't have to do with discounts or avoiding sales tax.
As far as
taxes go, I need too provide a accounting to either pay
taxes on my
profits, or write off my losses.

(me) You do whatever you do...'period'.
You do as you can see TO do..'period'.

(Lois)
Although if you have a tax number
(which is usually your SS#)

(me) Which under federal 'law' is Illegal.
The 'Social Security Number was NEVER supposed nor allowed
under 'law' to be used as a form of identification for
ANYTHING other than one's subscription to the Social
Security Act.

(...ask me if I care...)


(Lois)
you can avoid paying sales tax on business
related goods and services.


(me) Avoid?- or merely are not obliged to do so under the
terms of your subscription to it?

Too...it is only if those 'goods' are something YOU will
sell and collect the sales taxes on.
If it is something you intend to use and not (re)sell, then
you are supposed to pay the sales tax when you buy it.

Too, there is no 'sales tax' on 'services'...at least not
that I am aware of.



(Lois)
BUT - it also means you MUST file to pay
sales tax collected.

(me) Huh? Do you mean send in the sales taxes you have
collected from your sales?
Or do you mean you must 'file' to pay sales tax for someone
else's collecting of it for their turning of it 'in'?

I am confused here...!


(Lois)
The IRS loosely allows you to have losses for approximately
3 years,
which you can write off. After that, they expect you to
either break
even or show a profit.

(me)
Kinda sound like they are the actual 'boss' one is working
for, doesn't it?

(Lois)
After that, they likely hood of an audit
increases dramatically. They love to go after small
businesses.

(me)
Maybe bake, and send a 'Cake' to Claud Dallas
sometime...(does not have to have a 'file' or saw in
it...but just the 'gesture' even would be nice)...allthough
his situation was not about 'sales taxes', but (austensibly)
about a 'fish license' ( tax in effect)...he had a couple
little 'Trout' or something in a frying pan while
Camping...and...got 'audited'...


or...

Sic Semper Tyrannus




Best wishes!

Good luck,

Yours,


Phil
Las Vegas

Lois Ruben Aronow on mon 15 sep 03


>(Lois)
>I don't know how you got discounts, as most places charge
>MORE for
>commercial accounts.
>
>(me) I have never heard of this...chargeing 'more' for a
>comercial account?
>Makes no sense!

I didn't say it made sense. Give Budget Rent-a-car a call and ask
THEM to explain it.

I think they figure businesses can afford to pay more, and to write it
off as a business expense, not taking into account the small business
person can't afford to do that.

Then again, I didn't say it made sense. It just is.=20

>(Lois)
> I'm having a hell of a time right now renting a
>cargo van for a show, as they all want DOUBLE, which is the
>commercial
>rate. I'll probably just do it on my personal account and
>pay the
>sales tax.
>

>Too...Since when is there 'sales tax' on renting something?

Welcome to NY.

>Or, I sometimes just cut to the chase (and knowing my
>subject in advance in order to evaluate or negotiate further
>their 'amswers',)and say, "Look, whatever the best rate IS,
>that is what I want.=20

That's why I love the internet. I'm doing a show in Nov that requires
me to travel. Expedia gave me a rate that's about half the rate the
one gets through the show. Internet internet internet. Now I know
someone will say I'm going to put local travel agents out of business
by doing that, but sorry. I'm literally saving hundreds.


>(Lois)
>It doesn't have to do with discounts or avoiding sales tax.
>As far as
>taxes go, I need too provide a accounting to either pay
>taxes on my
>profits, or write off my losses.
>
>(me) You do whatever you do...'period'.
>You do as you can see TO do..'period'.

While I have nothing to hide in an audit, it ends up being more
trouble than it's worth for years and years.
>
>(Lois)
> Although if you have a tax number
>(which is usually your SS#)
>
>(me) Which under federal 'law' is Illegal.
>The 'Social Security Number was NEVER supposed nor allowed
>under 'law' to be used as a form of identification for
>ANYTHING other than one's subscription to the Social
>Security Act.
>
>(...ask me if I care...)
>
I don't make the rules. You DO get a different number if you have
employees. But for a sole proprietor, which I am, that's the deal.
Maybe its just in NY State. Your mileage my vary.

>(Lois)
>you can avoid paying sales tax on business
>related goods and services.

>(me) Avoid?- or merely are not obliged to do so under the
>terms of your subscription to it?

Sorry. Poor choice of words on my part.
>
>Too...it is only if those 'goods' are something YOU will
>sell and collect the sales taxes on.
>If it is something you intend to use and not (re)sell, then
>you are supposed to pay the sales tax when you buy it.
>
>Too, there is no 'sales tax' on 'services'...at least not
>that I am aware of.

It varies by state. And since there are Clayarters in many countries,
it also varies around the world. For instance, in the UK, you pay it
UP FRONT by the VAT taxes already added into the cost of the goods.

>(Lois)
> BUT - it also means you MUST file to pay
>sales tax collected.
>
>(me) Huh? Do you mean send in the sales taxes you have
>collected from your sales?
>Or do you mean you must 'file' to pay sales tax for someone
>else's collecting of it for their turning of it 'in'?

Yes. I collect sales taxes on my retail sales in NY State, and then I
have to file papers AND send them a check for sales tax collected. =20
>
>I am confused here...!

That's because laws vary from state to state. It also varies
depending on what kind of business you do. I have wholesale, retail,
and consignment accounts, and occasionally an order from a
not-for-profit. I must keep and provide accounting for all of thee,
including their resale numbers, etc etc etc. Too many numbers.

Thank god for Quickbooks and Excel.
>
>(Lois)
>The IRS loosely allows you to have losses for approximately
>3 years,
>which you can write off. After that, they expect you to
>either break
>even or show a profit.

>(me)
>Kinda sound like they are the actual 'boss' one is working
>for, doesn't it?

In a sense, yes.

...Lo




************
www.loisaronow.com
=46ine Craft Porcelain and Pottery
New Work for Summer 2003
New Show and Retail information

John Baymore on mon 15 sep 03



I don't know how you got discounts, as most places charge MORE for
commercial accounts. I'm having a hell of a time right now renting a
cargo van for a show, as they all want DOUBLE, which is the commercial
rate. I'll probably just do it on my personal account and pay the
sales tax.=3D20


Lois,

But from my experience in renting trucks.......... the ones you get on th=
e
"commercial" deal actually have a change of getting you reliably to the
show and back . When I used to rent general "consumer" trucks (don't =
do
that anymore) they were the scariest pieces of crap imaginable to drive. =
=

Always in terror that I would bareak down on the road. I also don't use
UHaul at all anymore. Unreliable, terrible maintanence, I use Ryder
commercial units when I need a truck.

best,

..................john

John Baymore
River Bend Pottery
22 Riverbend Way
Wilton, NH 03086-5812 USA

JBaymore@compuserve.com
http://www.JohnBaymore.com

603-654-2752 (studio)
800-900-1110 (studio)