Jon Elson wrote:

On 03/07/2011 12:22 PM, Ignoramus1796 wrote:
On 2011-03-07, wrote:
The local IRS agent reads this news group and has made notes to look
at your next year's tax return to see how you report this money!


Naturally, I report all my income.

i

But, now you qualify (if you didn't before) for the incredible
government giveaway called "exemption for business use of your home"
IRS form 8829.

Also, in Missouri (don't know about IL) they have incredible exemptions
on state use tax for anything that keeps a machine running or upgrades
it. So, a CNC conversion or retrofit of a dead control should be able
to be bought tax-free, assuming the original machine was capital
equipment. Also, drill bits, end mills, oil, etc. are tax-free.
I had to print out the relevant state tax commission rulings and read
them three times to believe what I was seeing.

I have no idea if other states have such a generous arrangement.

Jon

You have to be careful of such seemingly good exemptions, since they may
end up getting you stuck paying business tax on your personal property.
Trying to explain that 5% of the use of your machines is for business
and 95% for personal enjoyment will confuse the hell out of any auditor
who already has no understanding of metalworking as a hobby. Just report
your miscellaneous income as general consulting income and be done with
it.