[TheForge] Insurance (Re: Equipment for a newbie)

[Bruce Freeman]

I don't know whether it applies to insurance, but the IRS
distinguishes a hobby that occasionally makes some money from a
business FOR profit (that may sometimes lose money).   The latter has
to be reported on schedule C, and you can deduct all expenses from all
profits.  The former is not reported on schedule C, and you may only
deduct expenses up to the amount of profits.

Don't trust my reading of this -- I'm no CPA.

On Fri, Nov 12, 2010 at 4:41 PM, Rob Fertner <rfertner at cox.net> wrote:
> As long as my blacksmithing is a hobby, my homeowner's insurance covers my
> shop. My agent told me as soon as I make it a business, I'll have to get a
> separate policy for the shop. I don't believe an occasional sale would
> account as being in business.
>
> Rob
-- 
Bruce
NJ