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... Enterline,
I appreciate the opportunity to advise you regarding the tax treatment of your furniture building activity. The tax treatment depends on whether the activity is a hobby or business. If it is a hobby, the tax deductions are limited. ... Based on what you told me during the interview, I consider your business activity of making furniture is a hobby. ... Manner in which the taxpayer carries on the activity
You like to make furniture in your leisure time. You make furniture for fun, not for profit. ... If you prepare for developing furniture activity by study of its accepted business, economic, and also seek expert advice, you can consider have a profit motive. ... With a hobby, even if the activity was inherently unprofitable, it is something you would choose to do anyway. On the other hand, if you devote substantially all of your available time to the activity, the more likely it is that you have a profit motive. ... Expectation that assets used in activity may appreciated in value
Although you use your tools to make furniture, it doesnĄ¯t indicate that business assets will appreciate in value over time because tools just your natural things.
Approximate Word count = 865
Approximate Pages = 3.5
(250 words per page double spaced)
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