One other thing to think of--Insurance.

Your homeowner's insurance covers your hobby tools. But, if it's a
business, it may not.

You'll never hear a peep from the insurance company, but if there is a loss,
they are smart enuf to check and see if you have been claiming that this was
a business, which may be enuf of a material non-disclosure to void your
claim.

Better check that aspect out too.

Walt C


"MrAnderson" wrote in message
ups.com...
I've just started a part-time woodworking business this past year in
part to write-off the costs of building a barn workshop. I don't plan
to be all that active in the business at first, but expect to pick the
business up when I retire in about 10 years. I don't intend to make a
fortune at this and I don't expect to make a profit the first few
years.

The IRS has certain rules in what constitutes a business versus a
hobby. You must have an active plan to make a profit and always be in
the process of marketing yourself. Has anyone had a similar
experience with the IRS, good or bad. I don't want any suprises down
the road when my significant deduction is denied due to a hobby
designation.