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Miles 111
New Member

Unique situation?

I have a dozen ways to make money as self employed or entrepreneur. I fit no categories. I get paid as an artist, seller of raw materials, fossil hunter,  gardener, writer, create video, and more. I file under one business. There is no easy category, is this ok? I simply cant file under 12 businesses.  I may have a high gross (not going to mention), but live for my work, so 95% of what I do is 'business.' I make my life my business. "Figure out what you like to do and find a money angle" Is my motto. My 'profit,' is way low, poverty, never a refund- none wanted. I could, ' not file,' call it all a hobby?  However there seem to be advantages to having a business. I need a business in order to enter some shows for example, or deal with some wholesale people. How could I high end sell and say I am not in business?  Customers would find that odd. At what point is it good to simply stop filling, done, call it retired, call (hypothetically)  $100,000 grand gross, a hobby. Would that send up red flags and create an investigation? I'm 70, get social security, and it is getting harder just to understand the tax forms. I might hire someone, but my records seem to me, quite complicated due to 12 ways to make money, with poverty profits. Who would take it on? Reams of paper proving I'm poor!  I do the best I can,  and pay for max Turbo help if ever audited. In truth if there were an investigation and all my numbers are totally off, the end result of an investigation would be close to the same bottom line I come up with. Poverty. I, for example, do not even bother claiming any transportation costs because I am not interested in the complications of keeping track of milage, depreciation, repairs , so 'just forget it.' If it looks like I might make to much profit, I simply buy something for the business, like a few opals for $1,000 each, or gold nuggets I  turn into jewelry, or some new cool piece of machinery for the shop I'd like to try out. Is there some point at which this would not be allowed? I'm not that low profile. Spend a lot on advertising. Own boats, several pieces of land, two shops and workplaces in two states. All legit business, all with proof of making me money with matching costs. How does one handle such a situation? Any advice? 

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2 Replies
ColeenD3
Expert Alumni

Unique situation?

First of all, it is not a hobby, it is a number of businesses. And, yes, the IRS expects you to file as many Schedule Cs as needed to differentiate between the various types of jobs. 

 

You included, "artist, seller of raw materials, fossil hunter,  gardener, writer, create video, and more. I file under one business." To the degree that you can fit categories together, such as finding materials to create jewelry, that is one business. Your raw materials are inventory.

 

However, you can't include gardener, writer and video creator. These are all separate businesses and need to be reported as such.

 

 

Miles 111
New Member

Unique situation?

Replying to  Coleen D3 thanks. 

So if a person runs a business called , say. "Jack of all trades,' there is no such category. 

I do blend all ways I make money under one heading. My raw is not inventory. I sell much as 'art' on the table with jewelry as displays. Some might be raw material for other artists. Some I find, some I buy, some I use in my own art, some I pass on, some is thrown away. Gardening= some wood I grow is for art, most flowers are to decorate my business property. The compost is used to clean some raw materials used in my art that I find. At farmers markets I sell my art, some garden items are in pots I made. I write about a lifestyle that includes art, raw material gathering, with 'how to books' sold on my art table. Video is 'how to' for the website helping to sell my art like blank knife blades, how to put a handle in it, using wood I supply for the greenhouse business, and provenance proving I do as I say I do and credibility for my work is not done in China. Here I am in my shop, in my boat getting materials for my art.  

There is no 'check all that apply' option is there? When my total self employment income is hypothetically $500 a year?

 

I  used to have an accountant help me, been in biz for 50 years. he was good. In his past, an accountant for the Rolling Stones band. I trust his opinion, however laws have changed and he can no longer help others do their taxes on the side. It requires a different level license. Now he prefers not to keep up on. it I'd pay him in the past, and for him it was easy. More complicated as time goes by for me.  Oh well. Thanks for. your input. Before I spend hundreds of hours filing on a dozen business to make maybe $500 profit, I'd quit. Not interested in IRS problems for $500. Just curious what others might do in the same situation. I often wonder for example if 'running a garage sale' is the name of a business category to do reams of paperwork on. I see a lot of people running garage sales, but do not see it listed under a list of legal businesses. I feel like my business is like to old dog and pony show of yesteryears, the guy who has something for everyone, who shows up in small communities and sells whatever it is you need.  Garden seeds, plows, booze, women, hammers, his horse. Sees a need and fills it. A man of magic. There is no one else like that? That seems strange to me. 

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