Video Workshops from the I.R.S. - Am I a Business or a Hobby? - OR - Make Your Business More Business-like!

For artists and makers, running your business in a manner compliant with I.R.S. rules can make a BIG DIFFERENCE between being declared a "business" or a "hobby" and potentially major financial consequences.  The IRS defines "hobby" as "an activity not engaged in for-profit" and deductions for expenses are limited.   On the other hand, a "business" is allowed to deduct the operating expenses from their business revenue to determine net taxable income.  Read more about this issue: "Business or Hobby? Answer Has Implications for Deductions."

In the course of preparing for my recent audit and writing these articles about "Surviving the I.R.S." I found a great set of videos on the I.R.S. website that I  recommend if you want to learn more in convenient, digestible segments.

Grab your tea or coffee cup!!  The video series is called Small Business/Self-Employed Virtual Small Business Tax Workshop.

There are 10 Lessons.  I suggest that you listen to all that apply to you. 
If you hover your mouse pointer over the Lesson it gives you the full name of the lesson and the subjects covered.

The Introduction and Lessons 1 - 4 are fundamental information.  I especially recommend that you listen to at least these four.  You can pause, replay, or skip around.  Start with the Introduction (it is really short.)

Everyone should listen to: Lesson 4. What you need to know when you run your business out of your home.

Harriete

BELOW are summaries of the first four lessons: 

Lesson 1.  What you need to know about Federal Taxes and your new business
  EIN (Employee Identification Number)
  Record Keeping
  Bookkeeping and Accounting
  Forms of a Business Organization
  Paid Tax Preparer

Lesson 2. How to set up and run your business so paying taxes isn't a hassle.
  Net Profit and Loss
  Deductions
  Depreciation
  Disability Access Credit
  Self-Employment Tax and Estimated Tax

Lesson.3 How to file and pay your taxes using a computer.
  Describe IRS e-file
  Benefits of e-file
  Electronic Payment Options

Lesson 4. What you need to know when you run your business out of your home.
   Determine Deduction Eligibility
   Types of Expenses
   Deduction Limits  

Sit back, listen up, and
                         take your legal deductions.

This post was updated on January 22, 2022.

Good to the Last Drop Flower Brooch  by Harriete Estel Berman