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mazultav

Selling Jigs as a Hobby

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I’m interested in selling some of my jigs over Instagram. I’m just looking to break even just to have an excuse for the wife for why I need new molds/skirt material.

I understand that profit or not I’m responsible for 10% FET quarterly and I can report it via IRS Form 720. My confusion comes in with Form 637.

If I purchase all my skirt materials, hooks, powder etc etc at retail and I don’t claim anything as a loss/expense (which I don’t think I can anymore as a hobby,) can I just track sales in a simple spreadsheet and send in a 720 every 3 months for 10%?

 

Thanks

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Welcome to TU. I would strongly suggest you speak to an accountant on this. Everyone's situation is different and since you are responsible for your taxes, you might as well get the correct answer from a qualified source.  Everyone has their own interpretation of what the taxes and the laws are and how they are applied, however your tax info might be different in your state. Good Luck.

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I looked into it a few years ago and here in MO they wanted me to collect sales tax and send it in quarterly along with all the other stuff.  I decided to just pass.

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1 hour ago, mazultav said:

Living in NH and not having a physical presence anywhere else I don’t think sales tax would matter to me.

You will need to collect from the states that require it. Your state for sure, plus the states like mine (Iowa) who want sales tax from anyone who sells and ships a product to here. You will also need to do the state business license/tax/fees also, even though you are not a physical location. Don't list your business as manufacturing, you are altering. If you do manufacturing you may have a state rep come knocking on your door to inspect your factory, then you will need local zoning permission and such if you live in a city. 

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A touch off topic, but I find it sad all the hoops that need to be jumped through in order to sell a couple baits. Small business is supposed to be the backbone of the American economy but when you look into starting one, it sure doesn't feel like they want you to start one or succeed. This isn't just for bait making, but a lot of businesses also.

I thought about doing the same thing, sell some jigs and soft plastics. I have a pension where I work but I paid into social security for 15 years prior. If I could get to 30 years in social security I could collect my full pension and full social security when I retire. I thought a little part time side business would be a great way to achieve this. Way too much of a headache for what I wanted to do it for. 

Good luck!

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24 minutes ago, BuckeyeFishing said:

A touch off topic, but I find it sad all the hoops that need to be jumped through in order to sell a couple baits. Small business is supposed to be the backbone of the American economy but when you look into starting one, it sure doesn't feel like they want you to start one or succeed. This isn't just for bait making, but a lot of businesses also.

I thought about doing the same thing, sell some jigs and soft plastics. I have a pension where I work but I paid into social security for 15 years prior. If I could get to 30 years in social security I could collect my full pension and full social security when I retire. I thought a little part time side business would be a great way to achieve this. Way too much of a headache for what I wanted to do it for. 

Good luck!

Amen!  Big Corporations and rich people don't even pay their fair share of taxes, but the Govt. rakes us over the coals.  Like Leona Helmsley, the woman who owned the Empire State Building, once said, "Taxes are for poor people".  Grrr....

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I've probably said this a million times and like sallmouthaholic said " don't quit your day job". This isn't meant for me to get rich off of. I have a full time job for that. This is my way of relaxing, talk to a lot of fishermen and learn what the latest tactics are to improve my fish catching . The money I make from this, I would starve and be poor if this was my only source of income. This is a hobby and that's all it is to me. Some days you have a good days pouring and you think you made money, other days, you want to quit and forget about the whole process. Luckily, there are more good days than bad days. All said and done if I figure everything that it costs me to operate, I'm better off working at McDonalds.  If they raise the pay to $15/ per hour, I'd definitely be better off.

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Wait...you make $15 an hour?? Whats your secret!!! LOL I'm still only making $2 an hour and it's been almost 19 years now? I'm jealous now :teef::teef::teef:

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35 minutes ago, Salty's said:

Wait...you make $15 an hour?? Whats your secret!!! LOL I'm still only making $2 an hour and it's been almost 19 years now? I'm jealous now :teef::teef::teef:

That's an accurate figure:worship:

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18 hours ago, Salty's said:

Wait...you make $15 an hour?? Whats your secret!!! LOL I'm still only making $2 an hour and it's been almost 19 years now? I'm jealous now :teef::teef::teef:

You read that wrong, he means if they raise McDonalds workers raise to $15/Hr. he's be better off working there part time than making lures.

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3 hours ago, smalljaw said:

You read that wrong, he means if they raise McDonalds workers raise to $15/Hr. he's be better off working there part time than making lures.

Exactly, plus free lunch.

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You guys have me beat by a long shot. Poured and powder coated 75 1/8oz. Jigs, powder coated, eyed, and topcoated 25 swimheads, and poured about 25 underspin in 1/4 and 3/8 today and didn’t make a penny. At least I didn’t write a check to Johnny Morris. I’m thankful for that and owe a big debt of gratitude to you guys that share years of knowledge here at TU. Thank you.

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15 minutes ago, Apdriver said:

 At least I didn’t write a check to Johnny Morris. 

You got that right, nice to pour your own jigs the way you want them and not have to pay retail.

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