WAH vs lucrative hobby

iVillage Member
Registered: 04-22-2005
WAH vs lucrative hobby
27
Mon, 03-23-2009 - 3:28pm

At what point (if any) does one make the distinction between WAH and having a hobby that happens to bring in a little bit of cash? I can't imagine paying any real bills by making hair bows.

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iVillage Member
Registered: 04-22-2005
Mon, 03-23-2009 - 5:36pm

From the article:
"The IRS uses a number of factors to determine if an eBay hobby that generates sales revenue is actually a business.

These factors include: - Do you carry on the hobby in a business-like manner? - Do you spend considerable time working on the hobby? - Do you depend on income from your hobby for your livelihood?

If the answer to any or all of these question is yes, you're running a business, not carrying on a hobby, and you are responsible for paying taxes on your income."

That makes sense to me. Thanks!

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iVillage Member
Registered: 07-17-2007
Mon, 03-23-2009 - 5:39pm

If you pour you earnings into more stuff to feed your hobby, then I'd say it is still a hobby even if the IRS taxes your income.

However, the wahp's I know, basically carry on what they did before on a per contract and ad hoc basis. It can be project to project work or more like consulting work. Booking keeping is one, health insurance consulting, estate attorney, HR consultant - anything that has a client base- they just do it on a much lower level of intensity that they did before. Around here there are quite a few that have contracts with the federal government that are like, "no more than 24 or 40 hours per month or whatever- to provide X service/advice/policy.

iVillage Member
Registered: 01-05-2000
Mon, 03-23-2009 - 9:13pm

When the IRS gets involved.

Chris

The truth may be out there but lies are in your head. Terry Pratchett

iVillage Member
Registered: 01-05-2000
Mon, 03-23-2009 - 9:20pm

" it seems that "real" WAH jobs are few and far between. There is direct sales (but you have to, you know, LEAVE THE HOUSE to attend the parties), "

Just like SAH doesn't mean never leaving the house, WAH includes working from home. The business is based in the home but the work is frequently done elsewhere.

Chris

The truth may be out there but lies are in your head. Terry Pratchett

iVillage Member
Registered: 01-05-2000
Mon, 03-23-2009 - 9:30pm

Basically when your profit exceeds your expenses/deductions.

Chris

The truth may be out there but lies are in your head. Terry Pratchett

Avatar for rollmops2009
iVillage Member
Registered: 02-24-2009
Tue, 03-24-2009 - 3:17am
Way back when, I did some translation work at home for extra cash. However, I found it very limited how much serious work I could do with a baby around. Also, it soon turned out that the translation work that actually paid (written translation work is notoriously underpaid in most markets) involved leaving the house. That, however, was not steady. So, the bottom line really was that to make any real money at it, it would have to be set up like a business and be run like a proper job.
Community Leader
Registered: 02-06-2006
Tue, 03-24-2009 - 9:31am

Yeah I agree with this.


I know several people who "work

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iVillage Member
Registered: 07-17-2007
Tue, 03-24-2009 - 9:35am
I thought WAH, was work at home. I didn't know it involved not using childcare. That would eliminate most of the host party sales gigs then- because the children are usually being taken care of by the pother spouse a or a babysitter. At last in my experience.
Community Leader
Registered: 02-06-2006
Tue, 03-24-2009 - 11:45am

Well yeah, WAH means working at home with no necessary relation to childcare.

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iVillage Member
Registered: 01-05-2000
Tue, 03-24-2009 - 12:02pm

"I think what are few and far between are WAH jobs that actually create a reasonable profit while at the same time allowing for the person to also be staying home with their children without having to use othercare."

I agree. Even childcare which can be done with your (generic) own children at home (in fact, in CA, your own children are counted in the # of allowed children), it might be more advantageous to use other care while watching other people's children. That way, your children aren't sharing you with "strangers". Although, my sister did it when her kids were little. She bought all "new" (gently used) toys so her boys didn't have to share their toys.

Chris

The truth may be out there but lies are in your head. Terry Pratchett