taking a little trip down memory lane this morning
all the way back to the early 1980's when I decided that if I was going to do a dozen in home boutiques (remember those?) every fall, that it would be a good idea to run it like a business
so I did all the business stuff --- registered a fictitious name, got a sales tax permit, kept records and reported the income and expenses on Schedule C of my taxes every year
when I first started I was making the usual home boutique crafty stuff -- Christmas ornaments, hot pads, place mat -- and I started making soft dolls
during the Cabbage Patch craze I made and sold as many outfits as I could squeeze in between working a full time job and taking care of a toddler
along the way I started making bears
but not toys
these bears were made out of mohair pile fabric that came from England or Germany -- and these bears were for adults
I made bears for just over 25 years and did a lot of shows
but markets change, and bears were not so profitable anymore
and about the time I retired from that day job and the now grown up toddler went off to college, I started making jewelry
at first it was simple stuff -- strings of stone beads, earrings and bracelets
then I rediscovered seed beads and started doing bead embroidery and bead weaving to make those necklaces and bracelets
and that took me all over the country doing summer art fairs for several years
but like I said, markets change, and it was not so easy any more to do the physical part of setting up tents and working for several days in a row in the heat
and about that time Etsy came along, and I opened an Etsy store to sell some of the stuff I still had that was not jewelry
and then I opened a shop that I put my jewelry in
along the way there I made a quilted piece
and then I made a few more
which took me into a whole new adventure
every year I still did that Schedule C tax thing --- but Uncle Sam has certain rules about what you can call a business and what they decide is actually just a hobby that you are trying to write off the expenses for
one of those rules has to do with showing a profit a certain number of years
and that brings us to the end of the era -- the past few years the business has not shown a profit --
and so this year I will not be filing that Schedule C --- I no longer have a business
but I don't consider this just a hobby either
I am still serious about making art
I will still keep those receipts and price my work as if it was a business, but until I sell enough to make a profit, there will be no more tax schedules
it feels odd
just one more twist in the journey
1 comment:
I'm nowhere near that situation, but my royalties petered out awhile ago and I still bought more Turbo Tax than I needed this year.
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