Dear Neckbeard:
Let me introduce you to social skills. Do keep your hands and feet inside for the length of the ride, and keep all questions for the end, mmm-kay?
Oh, and as someone who has started several businesses, I should tell you I do know what I'm talking about at least in regards to the IRS (though in all situations you should consult your own accountant / tax advisor / lawyers and not some guy on slashdot)
The poster, microcars, mentions that the IRS does not let you have a business that doesn't make money just for tax deductions. This prevents me from taking the ridiculous amount of money I spend on, say, photography and trying to create a non-profitable business just to make money. That's because in the past people have said, "Wow, look at all the money I sink into x, if I make it a business I can save money because i'll get tax deductions even if I don't
Non-profitable meaning that the business doesn't actually make any money because it's not profitable. You have 10 years from which you start a business to recoup startup costs once a business becomes profitable. So if, for instance, you keep good records, and you spent five years building a business in your garage, you can go back and get a tax write off for the last five years. Take 12 years to start up a business and, IIRC, the first two years are a "hobby" and the last 10 can be used for write offs. You can, in some instances, take the write off in the year the loss is recorded (but it gets complicated and this is the point you should be contacting your financial advisors), but in NO CASE can you take the write off if your screwing around with computers in your garage is just for fun.
This is to avoid people who have hobbies from trying to scam the tax system. And you can be sure if your business a) does not show a profit b) does not show significant business activity c) involves something like video games, windsurfing, drag racing, scuba, golf, or any other thing people pour gobs of money into for fun, and d) has just one employee, YOU, the IRS will red flag it and take a closer look.
A not-for-profit corporation that is a charity is something completely different.
Follow me so far?
Well your response was downright funny. Made me laugh out loud, although I'm sad to say at this point it was not clever wit.
Because, really, the reason I can't turn a hobby into a business for write offs is money. If I were Bill Gates, I could buy a famous photostudio. They could continue making money for me, and I could suddenly buy and write off thousand dollar cameras. Running the business might be fun for me, even though my career and my money come from somewhere else. Follow?
So knowing all this, and because we're joking, the NATURAL response for me would be to joke in response.
As we were joking, you could have kept up the joke. You know, to be FRIENDLY, like?
Micro: The IRS calls anything that's not profitable a hobby.
Pissy: Like Bill Gates' charity?
Me: Heheh. Guess rich people have different version of hobbies then us.
Pissy: Yeah if I were that rich I'd totally buy up a series of brothels and casinos in vegas and be the one in the QA dept.
See now I might respond, and we'd get a conversation going. That's how it works with normal people.
Instead, you keep blathering on like an idiot, and it's really funny because Micro was indeed correct. Instead you're so focused on being RIGHT (what exactly do you think you're going to be right about anyways?) you insist on pissing me off and keeping this going.
Maybe next time reconsider your response. It also might make the discussions on slashdot more lively. It seems these days every child or grandchild thread is a jackass, which kills conversation, and frankly my enjoyment of said site.
END PSA.