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OKNancy

(41,832 posts)
2. OK.. this is a general question anyway
Fri Jan 6, 2012, 01:44 PM
Jan 2012

I used to own an S-Corp, but retired in 2010, so I really don't need to pay an accountant anymore.
Also he retired about the same time I did ( he was with me over 30 years)

One thing he did on my 2010 taxes was to count my little internet site as a business. This is a side thing.. NOT the S-Corp.
I kind of argued with him a little. I wanted it to be a hobby. As I read the IRS pages on what is considered a hobby, I'm pretty sure it's a hobby. I made about $750.00 in advertising commissions and maybe $1000.00 in "subscriptions".
I don't use the site to make money. It's just for fun. I do have some expenses, but nothing major.

So far no problem right? Well, my hubby says, if John ( not his real name) said it was a business, then it should be one this year too.
My argument was that John was a little behind the times and I even had to tell him what forms to fill out on another matter.

So.. the reason I want to list it as a hobby is...
1. It will save me preparation fees
2. I won't have to pay employment taxes on the profits.
3. It's just a heck of a lot easier.

My husband is freaking out thinking it may trigger suspicion if one year it's a business and the next it is a hobby.

Recommendations

0 members have recommended this reply (displayed in chronological order):

I'm not an administrator, elleng Jan 2012 #1
OK.. this is a general question anyway OKNancy Jan 2012 #2
In the pages you read..... A HERETIC I AM Jan 2012 #3
I had a similar question a couple of years SheilaT Aug 2012 #7
And Elleng, as far as an admin goes, I don't think this group needs one... A HERETIC I AM Jan 2012 #4
Gotcha, Heretic. I agree. elleng Jan 2012 #5
I agree. We do not have a host currently. I don't think it's necessary. Common Sense Party Jan 2013 #11
Yes Obbiously Billy Patterson Aug 2012 #6
found reinfinland Jan 2013 #8
Welcome to DU! William769 Jan 2013 #9
Indeed. It's fun to welcome a newbie to DU. In_The_Wind Jan 2013 #10
Latest Discussions»Culture Forums»Personal Finance and Investing»Can we ask tax questions ...»Reply #2