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Jon Anderson Jon Anderson is offline
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Posts: 916
Default tax question: switching over from hobby to business?

Jon Elson wrote:

There is no way my business could make money in an
industrial park rented block building. I'd be bankrupt in 3 months.


In the same boat here. Manual and CNC knee mills, Hardinge
manual chucker, Hardinge w/Omniturn, Roll-in saw, drill
press, MIG welder, 3 roll aways, three Lista/Vidmar
cabinets, several other shelving/cabinets, 4x8' workbench,
and lots of other stuff in less than 900sq/ft.
I live on a short dead end road. PG&E right of way for 60KVA
transmission lines on one side, landlord's property on the
other. House above me is landlords also, never had a
complaint from anyone living there, and that's the only
place close enough for me to worry about.
Landlord built this place in the 60's with the downstairs
intended to be shop space. He used to make repro Model T
parts here, and thinks it's really cool I'm using it as a
shop too. Shop and house total about 1700sq/ft and I pay
$870/month.

I'd love to go commercial, but would need to quadruple my
income to even consider it.

Jon