Time to avoid formally setting up the business with the IRS. The :rulz state that with a hobby, if you have two consecutive years making a profit, you must make it a business. My first year I lost a bundle, getting everything needed to get going. The second year I made a nice profit, and now I'm trying to get down in the red.
Of course, whatever I purchase must be related to the harness business. Tool boxes, tools, harness cores, printers, a decent phone, etc., all count. Routine supplies are in much stock, so it's time to expand things out a bit...I'm beginning to understand how wimmen love to go shopping!
I bought a new Droid2 cell phone, and I'll pro-rate the cost to the business, as I use the phone to check e-mails and correspond with my clients. I also bought a variety of magnifying glasses/lens to help out my poor vision when working on small items. I'll be buying a new laptop for keeping track of client e-mails, orders, etc., and have to upgrade my old Office 2000 to the more recent version. I'll be pro-rating the computer and software, as it isn't fully used by the business. I just finished spending $200 on rubber tool box liners (top quality) as well.
This is kind of fun, but for next few years, I simply am running out of things to buy, unless I go to Snap-On and buy replacement tools and tool chests. Every other year, I can keep the profit for my own use, but the alternative years I have to go into the red. Still, it is a lot of fun to go shopping!
Of course, whatever I purchase must be related to the harness business. Tool boxes, tools, harness cores, printers, a decent phone, etc., all count. Routine supplies are in much stock, so it's time to expand things out a bit...I'm beginning to understand how wimmen love to go shopping!
I bought a new Droid2 cell phone, and I'll pro-rate the cost to the business, as I use the phone to check e-mails and correspond with my clients. I also bought a variety of magnifying glasses/lens to help out my poor vision when working on small items. I'll be buying a new laptop for keeping track of client e-mails, orders, etc., and have to upgrade my old Office 2000 to the more recent version. I'll be pro-rating the computer and software, as it isn't fully used by the business. I just finished spending $200 on rubber tool box liners (top quality) as well.
This is kind of fun, but for next few years, I simply am running out of things to buy, unless I go to Snap-On and buy replacement tools and tool chests. Every other year, I can keep the profit for my own use, but the alternative years I have to go into the red. Still, it is a lot of fun to go shopping!
