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Get your taxes done using TurboTax
Selling crafts can be either a business or hobby, depending on the details of the activity. One key factor is your intent. If you intend to make money, you have a business.
Here's another IRS reference: https://www.irs.com/articles/tax-tips-people-who-earn-income-hobby
The question you didn't;t ask is: do you get a deduction for the "supplies that were purchased a few years ago". The answer is yes. The amount you get to deduct is the lesser of cost or fair market value on the date you "converted it to business/hobby use".
Where do you enter it, in TurboTax (TT)? After YOU decide whether you have a business or hobby, type either business income or hobby income in the find box. Then click jump to.
Here's another IRS reference: https://www.irs.com/articles/tax-tips-people-who-earn-income-hobby
The question you didn't;t ask is: do you get a deduction for the "supplies that were purchased a few years ago". The answer is yes. The amount you get to deduct is the lesser of cost or fair market value on the date you "converted it to business/hobby use".
Where do you enter it, in TurboTax (TT)? After YOU decide whether you have a business or hobby, type either business income or hobby income in the find box. Then click jump to.
May 31, 2019
7:06 PM