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Hobby license ?
Posted by:
Ed Carr
(---.stkn.dial.netzero.com)
Date: January 31, 2005 09:15PM
I'm in calif. and a friend of mine has been building rods for years on a hobby lic. He isn't real book smart but he has been doing it for years. He is always vague on how it works anybody have any knowledge of this. Re: Hobby license ?
Posted by:
Anonymous User
(Moderator)
Date: January 31, 2005 09:23PM
No such thing as far as the IRS is concerned. If he builds and sells rods, he is liable for the Sportsfishing Excise Tax. As far as a California business license, they may well offer something that precludes him from having to have a standard resale license. I would suspect he must still pay state sales tax. Why not contact the California Department of Revenue and just ask them what is involved.
.............. Re: Hobby license ?
Posted by:
Ed Carr
(---.stkn.dial.netzero.com)
Date: January 31, 2005 09:35PM
Thanks Tom I was just going to do a goggle search and see what I come up with. I think my friend claims a loss every year. I know as slow as I work I'm paying for the right to build rods. Best thing I've done since I started building is to stop watching the clock, for me its all about the work not how long it takes to do it. I still have a regular job I build rods to keep me from doing yard work. LOL ED... Re: Hobby license ?
Posted by:
Robert Huisman
(---.cpe.ga.charter.com)
Date: January 31, 2005 09:39PM
He's also responsible to IRS for the Income.
Income from hobbies get treated differently by IRS, but in a negative way, in that they may decide that an operation is a hobby, not a business and disallow certain deductions. Unless there is some special quirk in the California sales tax statues, which it being California I seriously doubt exists, there is no such thing as a hobby license. Re: Hobby license ?
Posted by:
Ed Carr
(---.stkn.dial.netzero.com)
Date: January 31, 2005 09:48PM
I found some information under hobby business. I didn't read anything yet wanted to post this thread. Thanks ED.. Re: Hobby license ?
Posted by:
Anonymous User
(Moderator)
Date: January 31, 2005 09:48PM
Even if he loses money, the IRS will still require that he pay excise tax on every rod sold.
I know that one time in NC you could obtain a "small business status" license that would reduce your state sales tax filing from monthly to quarterly, but that's about all it did. Since then, everything moved to quarterly. ......... Sorry, only registered users may post in this forum.
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