adammil1
Titanium
- Joined
- Mar 12, 2001
- Location
- New Haven, CT
I have been producing a little product as a side hobby. Typically I sell maybe $2-3,000 a year thru PayPal. I am thinking about doing a bigger run of my widgets, hoping to maybe able to clear $10,000 in revenue with the product if made in bigger quantities but I don't see it getting much more than that given the limited market.
Now that the IRS is changing the rules on PayPal reporting its probably time to set things up more legitimately but last thing I want to do for such a small product line is kill myself with accounting fees.
What's the best way to handle tax reporting of a business like this? My wife is usually the one who files everything with turbotax so I have never done it. Ideally I would just file with turbotax and deduct expenses for tooling, materials against the cost of goods sold. Is it that simple or is there more to it?
I assume other expenses such as repairs to my CNC miling machine (which even though it's part of my hobby shop) would be fair game for deductions too so long as I use it to make my product right?
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Now that the IRS is changing the rules on PayPal reporting its probably time to set things up more legitimately but last thing I want to do for such a small product line is kill myself with accounting fees.
What's the best way to handle tax reporting of a business like this? My wife is usually the one who files everything with turbotax so I have never done it. Ideally I would just file with turbotax and deduct expenses for tooling, materials against the cost of goods sold. Is it that simple or is there more to it?
I assume other expenses such as repairs to my CNC miling machine (which even though it's part of my hobby shop) would be fair game for deductions too so long as I use it to make my product right?
Sent from my SM-J737V using Tapatalk