It's Official: We're in a RecessionWhile the announcement yesterday wasn't a surprise, it is good to acknowledge what many people have already known and felt. The National Bureau of Economic Research, or NBER said Monday...Don't Treat Your 401k Like a Savings AccountThe holidays can be a time where money becomes tight, and many people turn to their 401(k) or other retirement plans for some quick cash. If your retirement plan has...Saving Money is Easy if You Make it AutomaticMany people think saving money is hard, but it doesn't have to be. The biggest problem is that most people treat savings as something that should be done after all...Health Insurance Options After Termination or Early RetirementIf you're a full-time employee, chances are health insurance is one of the benefits available to you. If you choose to take advantage of this benefit, you probably understand that...3 Tips to Help You Maintain a BudgetThe process of creating a budget can be daunting at first, but creating one is actually the easiest part. Maintaining and staying true to your budget for any period of...Use the Rule of 72 to Estimate How Long it Takes Your Money to DoubleHave you ever wondered how you can quickly estimate how fast your money or investments will grow? Sure, you can plug numbers into a financial calculator or software program to...
like manner
How much time and effort you put into making a profit
Whether you depend on the activity for your livelihood
Whether your losses were due to conditions beyond your control
Whether you changed your operating methods to improve profitability
Whether you or your advisors have the knowledge needed to carry on a successful business
Whether you successfully made a profit in similar activities in the past
Whether the activity makes a profit in some years, and how much
Whether you can expect to make a profit in the future from the activity
Here are some things you can do to show that you are indeed operating a business and not just a hobby:
Get an employer identification number (EIN)
Apply for a business name
Have a separate checking account to be used for business tr ansactions
Hire an accountant to keep your books
Create a business plan
Keep track of the time you spend each week doing business activities
Consult other business owners or advisors to help make your business profitable
To minimize the income tax on your eBay sales, you should treat your business like a business, not a hobby (even if it is just a hobby!). By following the tips in this lesson you will be able to deduct your business expenses and keep your tax liability to a minimum.
To your financial success,
Kristine McKinley
Article Source: http://articlecrazy.com
Kristine McKinley is a CPA and Certified Financial Plannerฎ. For more information on eBay taxes, sign up for our free special report 'Tax Tips for eBay Sellers'.=> beaconfinancialtips.typepad.com/ebaytaxtips/2007/02/free_special_re.html
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