P3D Re: Litmus test

[Ronald Beck <ronald-beck@xxxxxx>]

> It makes me wonder
> >about your true motives.    Are you in it for the love of a hobby -- or is
> >this a business?  I suppose a real "litmus" test would be whether you write-
> >off your expenses to say --- the NSA/PSA conferences on your taxes.


I just read this comment and it got me to thinking about business vs
hobby.  Perhaps it would be of interest to some of the members of this
list to start their own "business" with their 3D hobby.  We already have
some members of this list who also run some sort of 3D related business.

The IRS allows you to take a loss for three years before they consider
your "business" your hobby.  However, even this rule is flexible.  And,
even a profit of $1.00 is still a profit!  Just think, all the expenses
of shooting, processing, mounting, advertising, and even acquisition of
merchandise could be written off on your Schedule C (such as that trip
to Greece to make a Parthenon slide series).  And with tax deductions
practically nil, this might not be a bad idea.  Naturally, check with
your financial advisor or accountant.

And, after three years of losses, close the business and start another! 
So, the first business you sell cameras with viewers on the side, the
second business you sell viewers and cameras, the third business you run
a camera/viewer repair business, the fourth business you sell images,
the fifth business you rent cameras and viewers, etc...

Making a business out of your hobby is NOT a bad thing!  It's the free
enterprise system at its best!

Thanks to all those out there who do "collect and sell" whether as a
specified business entity or simply to continue financing their
"hobby".  I know I appreciate it.

Regards,
Ron


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