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The Sew What’s New Archive
This archived content is from Mary Wilkins’ sewing and
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From: sewnfrenzy
Date: 08-27-2003, 10:54 PM (1 of 15)
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I've read lots of posts about home based business's. They all say keep receipts, track your sales, etc... But I'm wondering, what if you are going to use your stash to make your things out of? And how much do you have to sell before you have to start worrying about reporting it. Is there a site you can go to see this kind of info for your particular area? Trish So much Fabric, so little time.
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User: sewnfrenzy
Member since: 11-06-2001 Total posts: 39 |
From: LeapFrog Libby
Date: 08-28-2003, 06:58 PM (2 of 15)
In the US , if you have gross receipts of $ 400.00 or more, then that income has to be reported on your tax return... If you have expenses, (you would, in a sewing business) then you have to put the information on a schedule C that attaches to the form 1040 income tax return..
Sew With Love
Libby |
User: LeapFrog Libby
Member since: 05-01-2002 Total posts: 2022 
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From: Aimee S
Date: 08-28-2003, 07:21 PM (3 of 15)
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There is also another way to do it on your 1040. You put it under the Hobby expenses then you have a Hobby income. Like me for instance. I save all my receipts for all things that I purchase for crafting. Coloring books for embroidery and all fabric and the like. Even my computer. I keep all the receipts for each month in a minila envelope. then I add all the receipts on the front of the folder. I also keep track of the income on the front of the envelpe. then at tax time at the hobby expense line I total all the expenses for the last year from the envelpes. record the total there. Then I take the total for the income from it on the hobby income. Trust me my income is not even half of my total expenses. My hobby also in tails making clothing for family and the home so that expense is in there. I do not have a tax resale licence so I do pay full price for things but when I write up the receipt for the customer it has the actuall total for the supplies. I have no mark up. then I write up my time. that way on the receipt it looks like I have a for service hobby business not a resale business. Resale is the marking up of the mdse for profit. I make no profit from the supplies I use. 3 yards of fabric that cost me 5.99 including the tax I pass that on to my client as if they went and purchased it them selves. I know some will argue with me. I have a masters in business and am only a test away from my CPA. I have also studied the tax law and have worked for a tax atorney during the tax time. The only way i would get in trouble is with my City who passes a law that if you work for 1 cent or 1 million dollars you must purchase a business license for 1000 per year even if you dont gross that much. They have no law concerning a hobby business and that is how I have myself listed on my federal and state taxes. The more you disaprove, the more fun I am having!
http://photos.yahoo.com/aimeehs29 |
User: Aimee S
Member since: 02-23-2003 Total posts: 488 
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From: LeapFrog Libby
Date: 08-29-2003, 05:44 PM (4 of 15)
Also, you can never take a loss on hobby income.. That is an automatic invitation for an IRS audit because they do not allow losses on hobby income.. When you have a business listed and show a loss on it 3 years in a row, they force you to convert to hobby income because they say you are not trying for a profit.. We went down that road with clients quite frequently when I was in the tax business.. 
Sew With Love
Libby |
User: LeapFrog Libby
Member since: 05-01-2002 Total posts: 2022
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From: sewnfrenzy
Date: 08-31-2003, 04:32 PM (5 of 15)
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Thanks for the tips. Anyone have experience selling on Ebay AND selling at craftbooths? which method did you prefer? Trish So much Fabric, so little time.
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User: sewnfrenzy
Member since: 11-06-2001 Total posts: 39 |
From: Aimee S
Date: 09-01-2003, 02:12 PM (6 of 15)
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I do sell on ebay but only things that my clients dont pick up. I have on my contracts that after 90 days the item is mine to do with as I please. I usally list them on ebay with a staring bid for the remainder of what the clients owes. I can tell you one time I made these pillows for a clients. I called for about 5 times in teh 90 day period. the gal always said she would come and get them in the next day or so. well I get this call. she asks if those are her pillows on Ebay. I tell her they are. she begs me to end the listing. she came over with in the hour and paid to end the listing. Love it. I see mostly things that I want to get rid oe. to me it is a large garage sale with more exposure then the corner of my street. People are looking for bargins. I have found that if you use the words like ONe of a kind and Boutique the items go for a higher price. The more you disaprove, the more fun I am having!
http://photos.yahoo.com/aimeehs29 |
User: Aimee S
Member since: 02-23-2003 Total posts: 488
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From: sewnfrenzy
Date: 09-01-2003, 10:56 PM (7 of 15)
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Aha, Good for you Aimee, what did she think, you were going to give her a discount past the 90 days!?! Taught her I've never sold on ebay, but I like the idea of not having to hassle with craft booths for a whole day to maybe sell a few things. I don't really think I want to mass produce things. I want to do maybe a few of each item and some one of a kind peices... Do you find if you put a starting price up it scares bidders away? I don't want to loose money on my stuff. Trish So much Fabric, so little time.
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User: sewnfrenzy
Member since: 11-06-2001 Total posts: 39 |
From: Aimee S
Date: 09-02-2003, 12:14 AM (8 of 15)
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What I do is start the price at 1.00 but I put the reserve at what I am owed. That way it looks like a low starting price but you keep it a secret for the reserve. I do tell people th eprice if they ask but few do. Some times I put a Buy It now on it also and then they can get it at the price I am willing to let it go at and they get it before the week is out. works for both of us.
The more you disaprove, the more fun I am having!
http://photos.yahoo.com/aimeehs29 |
User: Aimee S
Member since: 02-23-2003 Total posts: 488
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From: weB2cats
Date: 09-05-2003, 08:53 AM (9 of 15)
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I really like the idea of selling my merchandise on eBay. Does anyone know how I get started? Obviously there needs to be a picture of my completed item but I don't have a digital camera or a scanner yet. I know that pictures can be made into CDs and downloaded into the computer to add to be used for eBay (although I'm not sure how that's done). Does anyone have helpful information on this subject? I'd like to get started soon. Thanks. |
User: weB2cats
Member since: 11-07-2002 Total posts: 232 |
From: Aimee S
Date: 09-05-2003, 10:49 AM (10 of 15)
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Well you would take pic of all your items then wander down to the Wal mart to get them developed and then check the box for digital pic. That way you can get them on the disk. While you are waiting for the pics you wander around the electronics area. On a hook you see a little digital camera for under 30 it only holds 8 pic at atime but you decide what the heck. You take it home take the eight pic then hook the cable up to the computer and it automaticlly takes the picturs to your MY PICTURE file and you can re do it over and over. No need to keep all the pictures. and it cost a fraction of getting them developed and the gas. Also if you do not like the way it was pic you can erase and shot again. it is sooo easy.
The more you disaprove, the more fun I am having!
http://photos.yahoo.com/aimeehs29 |
User: Aimee S
Member since: 02-23-2003 Total posts: 488
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From: jennifer007
Date: 09-05-2003, 12:29 PM (11 of 15)
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Aimee's right, there are several little cameras that you could buy to start out with under $30. I borrowed a good camera until I sold enough then I bought what I wanted off of ebay. Spent less money than at Wal-Mart and got a better camera than I could have afforded from Wal-Mart. I have sold on ebay and sometimes it booms & sometimes it bombs. I read all the getting started info on ebay and watched auctions like I would have up for a while to decide what the action was like on like items, I say do lots of research if you want to start selling when you start listing. Craft fairs around here are very difficult to get booths in due to the fact everyone crafts something. So most of our fairs are the same people year after year with the same things. So I really don't have to much info on that. I did try flea markets, and decided I had to much other things I should have been doing instead of sitting, waiting on some one to ask about this or that. Main thing ebay has going, I can make as much or as little as I like. I set my hours, (truley) and decide how much money I make. Just do your homework on this one! Jennifer |
User: jennifer007
Member since: 05-22-2003 Total posts: 29 
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From: weB2cats
Date: 09-06-2003, 05:04 PM (12 of 15)
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Thanks for all the input. Jennifer, that sounds so good to me! I also recently realized that eBay has a guided "tour" of how things are suppose to work on their site. So, it explained a lot of things I had a question about. I don't know how I missed that before. I guess I was too busy shopping and didn't connect with the selling end! |
User: weB2cats
Member since: 11-07-2002 Total posts: 232 |
From: sewnfrenzy
Date: 09-11-2003, 10:37 AM (13 of 15)
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Originally posted by Aimee S What I do is start the price at 1.00 but I put the reserve at what I am owed. That way it looks like a low starting price but you keep it a secret for the reserve. I do tell people th eprice if they ask but few do. Some times I put a Buy It now on it also and then they can get it at the price I am willing to let it go at and they get it before the week is out. works for both of us. I was wondering, if you put in a reserve and only one or two people bid and don't reach your reserve, what happens??? Does the highest bidder win even if they didn't meet your reserve? Trish So much Fabric, so little time.
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User: sewnfrenzy
Member since: 11-06-2001 Total posts: 39 |
From: Aimee S
Date: 09-11-2003, 11:29 AM (14 of 15)
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NO. Neither one of you are under obligation to finish the transaction and you are only out your listing fee which is usally pennies. You can make an offer to the highest bidder if you wish but they dont have to take it. You can also relist the item and if it again does not reach the reserve you are charged no monies. Well actually what they do is charge you and at the end of the listing they credit you back the monies.
The more you disaprove, the more fun I am having!
http://photos.yahoo.com/aimeehs29 |
User: Aimee S
Member since: 02-23-2003 Total posts: 488
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From: lou-dezynz
Date: 09-13-2003, 11:33 PM (15 of 15)
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On the subject of selling items that you sew- make, there are a few very good craft consignment websites out there. Unfortunately, this divorce has seperated me from my sewing room. But if anyone is interested, I can look up my record books when at the house on Tuesday [picking up the next load of items I'm keeping and those I'm forced to sell due space limitations]. Alternately, do a search on yahoo "sewing consigenemtn online" and you'll find some. these generally are fee- based in that they may take 10% of the purchase price, but as with online auctions and paypal expenses, these can be figured into your asking/ lowest purchase price. Lou- Take life as it comes; there's always someone in a worse situation!
**I have A GREAT DEAL OF sew-quilt-craft FABRIC, PATTERNS, BOOKS, TOOLS for sale, along w/ vintage machines. Must sell off much of the contents of my sewing room due to lost home in divorce, need to downsize re relocating..** CHECK MY PHOTOS OF ITEMS FOR SALE at <http://photos.yahoo.com/<email address removed for privacy>> PAYPAL PREFERRED <<email address removed for privacy>> |
User: lou-dezynz
Member since: 02-02-2002 Total posts: 61 |
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