Stacy E. Apelt - Bladesmith
ilmarinen - MODERATOR
Moderator
Knifemaker / Craftsman / Service Provider
- Joined
- Aug 20, 2004
- Messages
- 38,105
If you wish to claim it on your taxes without it being a business, you claim the net income under "other Income".
You list the source as "knife sales from hobby knifemaking". You can't deduct other things like equipment or travel. The actual knife costs and incidentals (supplies and such) are the cost, and the net income is the selling price less the cost. You can generalize the cost in a hobby sale. You say, "It cost me $100 to make this knife, and I got $200 for it so my net income is $100." List that $100 on your tax form in "other Income". If you keep records, like my accountant told me to do, you can legitimize the amount claimed if ever asked to explain it.
You list the source as "knife sales from hobby knifemaking". You can't deduct other things like equipment or travel. The actual knife costs and incidentals (supplies and such) are the cost, and the net income is the selling price less the cost. You can generalize the cost in a hobby sale. You say, "It cost me $100 to make this knife, and I got $200 for it so my net income is $100." List that $100 on your tax form in "other Income". If you keep records, like my accountant told me to do, you can legitimize the amount claimed if ever asked to explain it.