How Legal Should I Be?

Decorating By klma Updated 15 Feb 2011 , 9:24pm by enchantedcreations

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ryannrochelle Posted 12 Feb 2011 , 6:38am
post #61 of 128

Maybe my mother just taught me manners when it comes to offering up advice or responding to others, but those that do not think some of the responses are rude, condescending or negative, are just crudely unaware of how they come across. In my real job, I work with highly educated people that have degrees coming out of their ears. I did not have the finncial means to obtain those degrees but instead worked my way into the crowd and it KILLS them that I sit next to them, know just as much about the business and make as much money as they do. So, I can see the same type of attidtude from the professionals in this thread. Saying things like "That's the usual response I get when the person doesn't have a legit argument." Condescending. You gave your advice now leave it. It's not up to you to belittle someone into doing the right thing.

What I truly understand is the frustration of the home bakers not being able to get licensed without going through rediculous steps. I can go out and get a daycare license right now for a dozen children. Cook out of my home kitchen for those children, every day, up to three meals a day BUT not make a wedding cake. My children are my most prized possetions and the government is more strict about a kitchen for a cake than it is for 3 meals a day for children in someone else's home.

In my real job, I work in a Laboratory and am a certified educator in Infection Control. I can honestly tell you that people have more things they should be afraid of than a homebaked wedding cake. I have looked into getting my kitchen certified and there is one problem with the way my kitchen is structurally laid out. Structure? Really? The government is down right petty and that is the real frustration. Sanitary facilities should be the concern.

There is a lot of negativity in this world today and when someone comes asking a question and you have the answer, deliver the answer and not your attitude. When my 5 year old daughter comes to me and asks me if her birthday is tomorrow, I tell her that it's not until October. I take the calendar out and show her. I don't treat her like an idiot for not knowing and I certainly don't treat her like an idiot for being frustrated that she has to wait so long for her birthday cake! What may seem like an elementary thing to some of the professionals, is still al learning process for the rest of us and probably the reason we joined CC to begin with. Your guidance is appreciated, however, your snarky cynical attitudes are not.

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jason_kraft Posted 12 Feb 2011 , 7:35am
post #62 of 128
Quote:
Originally Posted by ryannrochelle

Maybe my mother just taught me manners when it comes to offering up advice or responding to others, but those that do not think some of the responses are rude, condescending or negative, are just crudely unaware of how they come across.



Pot, meet kettle. icon_wink.gif

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cake_architect Posted 12 Feb 2011 , 7:55am
post #63 of 128

wow, so rude.

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motherofgrace Posted 12 Feb 2011 , 8:07am
post #64 of 128
Quote:
Quote:

When my 5 year old daughter comes to me and asks me if her birthday is tomorrow, I tell her that it's not until October. I take the calendar out and show her. I don't treat her like an idiot for not knowing and I certainly don't treat her like an idiot for being frustrated that she has to wait so long for her birthday cake!




Really? We are talking about and adult knowingly wanting to do somethign illegal.... not a child.

If she had just asked the laws and not made it blatantly clear she was going to do it no matter what thats a big friggin difference!


Heres a real comparasin for you
My 3 year old KNOWS its not ok to come up and poke me in the eye, and does it anyway, should she get punished?

shesh

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surgery2 Posted 12 Feb 2011 , 11:24am
post #65 of 128

stay away from this subject, all the old Know it Alls will comment, oops, see , already have

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costumeczar Posted 12 Feb 2011 , 2:02pm
post #66 of 128
Quote:
Originally Posted by surgery2

stay away from this subject, all the old Know it Alls will comment, oops, see , already have




Haha, I assume that I'm one of the "Old know-it-alls" since I don't think that people should be operating illegal businesses, whether it's cakes or house painting.

I have to say that I find it supremely ironic that people will post a question, then when they get an answer from people who KNOW the answer they get mad. Shouldn't you WANT people who know the answer to tell you the answer? Whether you like the response or not is irrelevant.

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enchantedcreations Posted 12 Feb 2011 , 2:29pm
post #67 of 128

I'm sorry, I must be stupid and blind, I have read everyone's comments and I've yet to be offended or pissed off. Costumeczar, you said it best a few posts back; (and I'm paraphrasing)............ this question keeps coming up because the Newbie is just waiting on someone to pop up and say, "Oh, yes, go ahead and sell cakes under the table, I do it all the time".

If anyone is really dumb enough to admit it that, well then they need to be caught and slappled on the wrist by the IRS and they need to be Screamed at by everyone on CC that has done it right.

And, I think everyone is in agreement that the red tape you have to go thru to get legal is a crazy system, no one is agruing that point. But it's still something you have to go thru. Period. You can't avoid it. And that my Cake baking friends is the point everyone is trying to make, you have to jump thru the hoops or be illegal.

It's one or the other. No in betweens. No iffish or sort ofs.

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LoveMeSomeCake615 Posted 12 Feb 2011 , 2:39pm
post #68 of 128
Quote:
Originally Posted by enchantedcreations


And, I think everyone is in agreement that the red tape you have to go thru to get legal is a crazy system, no one is agruing that point. But it's still something you have to go thru. Period. You can't avoid it. And that my Cake baking friends is the point everyone is trying to make, you have to jump thru the hoops or be illegal.

It's one or the other. No in betweens. No iffish or sort ofs.




Exactly. It's really not relevant that you think it's a stupid or unfair law. It's the law, whether you like it or not.

And I was raised to treat people with courtesy and respect as well (I'm sure most people on this forum were) and I don't see what is so offensive about what has been said. Did anyone ever say the OP was "stupid" for asking the question? Not that I saw, unless I missed something. Have some of the responses been said a little sarcastically? Yes, but lots of people use sarcasm to communicate a point, and I don't think it was meant as rude or hateful.

Nothing in this thread seems "nasty" to me at all. I have seen nasty on CC, and this ain't it. icon_wink.gif

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chachagyrl22 Posted 12 Feb 2011 , 4:29pm
post #69 of 128

It always amazes me when an illegal baker comes to the business forum and asks how legal they should be. How do you think the legal bakers are going to respond? Seriously...smh

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enchantedcreations Posted 12 Feb 2011 , 4:37pm
post #70 of 128

I think it's also prudent to point out we're IMing each other here. We're not face to face and it's very easy to misunderstand the content of a statement. I use to sell real estate. I never, ever discussed contracts over the phone. You can not read body languege over the phone. So even though some might think there are some rude comments, in reality, perhaps someone could be trying to make a half hearted attempt at a joke. I guess my point is, everyone can read things in a different light.

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QuadCities Posted 12 Feb 2011 , 4:53pm
post #71 of 128
Quote:
Originally Posted by enchantedcreations

I think it's also prudent to point out we're IMing each other here. We're not face to face and it's very easy to misunderstand the content of a statement. I use to sell real estate. I never, ever discussed contracts over the phone. You can not read body languege over the phone. So even though some might think there are some rude comments, in reality, perhaps someone could be trying to make a half hearted attempt at a joke. I guess my point is, everyone can read things in a different light.





THANK YOU .... You nailed it right .. of what can happen with emails an like these quotes ...

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QuadCities Posted 12 Feb 2011 , 4:58pm
post #72 of 128
Quote:
Originally Posted by enchantedcreations

I'm sorry, I must be stupid and blind, I have read everyone's comments and I've yet to be offended or pissed off. Costumeczar, you said it best a few posts back; (and I'm paraphrasing)............ this question keeps coming up because the Newbie is just waiting on someone to pop up and say, "Oh, yes, go ahead and sell cakes under the table, I do it all the time".

If anyone is really dumb enough to admit it that, well then they need to be caught and slappled on the wrist by the IRS and they need to be Screamed at by everyone on CC that has done it right.

And, I think everyone is in agreement that the red tape you have to go thru to get legal is a crazy system, no one is agruing that point. But it's still something you have to go thru. Period. You can't avoid it. And that my Cake baking friends is the point everyone is trying to make, you have to jump thru the hoops or be illegal.

It's one or the other. No in betweens. No iffish or sort ofs.





I agree .. I could of not wrote this any better .. Thank You for your great in-put statement ..

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leah_s Posted 12 Feb 2011 , 5:13pm
post #73 of 128

And just for the sake of pointing out the obvious, this question is posted in the *Business Forum*. We're about *business* here.


PS, The Business Forum was declared a Rainbows-And-Puppies-Free-Zone years ago. You ask a question in here, you get a straight answer.

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enchantedcreations Posted 12 Feb 2011 , 5:21pm
post #74 of 128
Quote:
Originally Posted by leah_s

And just for the sake of pointing out the obvious, this question is posted in the *Business Forum*. We're about *business* here.


PS, The Business Forum was declared a Rainbows-And-Puppies-Free-Zone years ago. You ask a question in here, you get a straight answer.




So, just to be sure....... the spoon full of sugar adage does not belong here either! LOL. Now, I AM being snarky for those who may not be sure. icon_cool.gif

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Rachel5370 Posted 12 Feb 2011 , 6:18pm
post #75 of 128

Someone argued awhile back that the government is too big. I'm not saying it isn't BUT- if more states instituted cottage laws, the government would have to be even BIGGER! For every person that is educated about food safety there are 5 or 10 with little to no knowlege on the subject. It is not a matter of common sense and wiping the counters clean. It is way more complicated than that. I took a course on safety and sanitation in culinary school that was several months long 5 days a week. I still have to work hard to keep up with changes to the law. If cottage laws are instituted- get ready for taxes to go up or education to get cut. The health department is already so backlogged everywhere, they can barely keep up with the restaurants and storefronts. Imagine if it became easy and cheap to make cakes legally from home. How many people would jump on that bandwagon? And then how many inspectors would they have to hire then? Just because your kitchen looks spotless does not mean there is not something unknown lurking there waiting to make someone sick! I hate the money I spend to get going with my business- I am still in that gap where I haven't made it back. It is causing financial hardship for my family. I sometimes wish I could sell from my home too, I get it. But the bigger picture is what I am trying to keep sight of. Taking that into consideration- I am against cottage laws.

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Rachel5370 Posted 12 Feb 2011 , 6:31pm
post #76 of 128
Quote:
Originally Posted by melave

ok i normally don't get involved in these discussions, but hey, i have some free time icon_smile.gif

Quote:
Originally Posted by indydebi

Quote:
Originally Posted by ryannrochelle

Marijuana is illegal period. Cakes are not illegal, so hence the rediculous comparison.

cakes sold from an unlicensed kitchen are illegal, subject to fines and other legal "reprimands", just like pot, or hooking, or doing home repairs without a contractors license.

Driving is not illegal .... unless you don't have a license.
Selling cakes is not illegal ... unless you don't have a license.

Lots of things that are not illegal have little rules that go along with them, which is the part that makes them NOT illegal.

Sorry, I just can't get my head around the idea of being able to pick and choose which laws we should follow under the pretense defense of "just trying to make a little money". Anything can be justified with that argument.

I'm just sorry for those who just don't want to hear it.


you have hit the nail on the head Indy. Well done icon_smile.gif

I cop this alot. I am a licenced electrician. Did an apprenticeship, have the ticket. BUT i can not work on anyones house (except immediate family) without a contracting licence

the amount of time i have been asked to just put a powerpoint in here or just install some lights is amazing.
Am i qualified.... yes
Am i confident that i can do it?.... hell yes
Could i make some awesome money..... oh yeh... or at least a lot of alcohol (people like to pay in cartons of beer in australia)
do i do it?.... no because it is illegal for me to do it

Oh but you are a licenced electrician, they say to me. Yes but i don't have the right ticket. No difference with cakes from the sounds of it

I could take the risk. and do it. and not get caught. BUT if i do get caught, i could lose everything, including my electrical licence which i need for my paying job. I choose not to risk it

I have read all the posts in this thread and i am not reading negativity, just facts.. You can make the choice, do it illegally, or do it legal. I know which one i would choose and have chosen




Ha ha, in Colorado pot is "legal" if you have a LICENSE!

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jason_kraft Posted 12 Feb 2011 , 7:31pm
post #77 of 128
Quote:
Originally Posted by Rachel5370

I'm not saying it isn't BUT- if more states instituted cottage laws, the government would have to be even BIGGER! For every person that is educated about food safety there are 5 or 10 with little to no knowlege on the subject.



It depends on how the cottage food law is set up, in some states no inspection is required, there is just an annual fee. If inspections are required, fees for cottage food businesses could be implemented accordingly, so they could essentially pay for their own enforcement without burdening other taxpayers.

Food safety education is usually provided by private businesses, not the government.

Quote:
Quote:

Imagine if it became easy and cheap to make cakes legally from home. How many people would jump on that bandwagon? And then how many inspectors would they have to hire then?



More people jumping on the bandwagon = more fees collected = more money to hire inspectors.

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jason_kraft Posted 12 Feb 2011 , 7:32pm
post #78 of 128
Quote:
Originally Posted by Rachel5370

I'm not saying it isn't BUT- if more states instituted cottage laws, the government would have to be even BIGGER! For every person that is educated about food safety there are 5 or 10 with little to no knowlege on the subject.



It depends on how the cottage food law is set up, in some states no inspection is required, there is just an annual fee. If inspections are required, fees for cottage food businesses could be implemented accordingly, so they could essentially pay for their own enforcement without burdening other taxpayers.

Food safety education is usually provided by private businesses, not the government.

Quote:
Quote:

Imagine if it became easy and cheap to make cakes legally from home. How many people would jump on that bandwagon? And then how many inspectors would they have to hire then?



More people jumping on the bandwagon = more fees collected = more money to hire inspectors.

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cathyscakes Posted 12 Feb 2011 , 7:52pm
post #79 of 128

I was one of those people that really didn't know the law. I started decorating cakes with my MIL, in the 70's it was always for family and friends, and never even seemed like an issue to become legal. I'm in Oregon, so it would be easy to become so. Maybe they paid for ingredients, mostly as gifts, but once in a while someone would give you a tip. I never knew this was illegal, seemed ridiculous to me until I read it on cc, that is was illegal. If you go to the wilton discussion forum, and many other cake sites, you aren't lectured about not being legal.I think CC has more professionals on the site, so they feel offended by these questions. What its taught me over the years, is that you do have to follow the laws, they have brought up issues that I never even considered. People are always asking me to make cakes for them, and its getting to be too much, too expensive. I don't charge, and they want to pay me, but I tell them i'm not legal and can't, they think its silly, and of course won't tell. I'm not worried about the people I bake for, I'm afraid of the only legal cake decorator in our town turning me in.

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lynn1968 Posted 12 Feb 2011 , 7:56pm
post #80 of 128

i was hatched in a barn and raised by a wolf that thought she was a cow, just so y'all know.

true 'nuff, the gov't has entirely too much control over a lot of business aspects. the reason seemingly arbitrary requirements are in place, however, is because when there were no laws people abused the (lack of) system. for example, the reason i'm only allowed to have two neon beers signs in my convenience store's windows is probably because someone out there had twenty, creating an eyesore. where did the two limit come from? who knows, someone just thought that was a fair and reasonable number and they had to draw the line somewhere.

i'm licensed in a lot of different convenience store areas, and it gets ridiculous sometimes. liquor, cigarettes, a food license to sell pre-packaged and sealed chips and pop, a vendor's license... there may be a few more i'm forgetting until i get the renewal for it. the licenses are expensive sometimes, but if you're good at what you do they shouldn't be *that* big of an issue once you're legit. if you go pro and can't pay for your license after you've been in business for awhile, well, maybe caking isn't your true calling, lol.

as i'll be slowing sliding into a cake bakery over the course of this year, i realize my store front situation is unique. if i didn't have a store, i'd definitely have to rethink opening up a business. i have noticed around here that a lot of new businesses are sharing space to obviously save costs. the ideal situation there is to find a business that compliments the bakery. while i'm getting a lot of positive feedback from my convenience store customers, i realize these people are going to be a lot of my initial customer base. as mentioned, word of mouth spreads quickly. and right now we have a few cakes we'll be working on just out of the house to donate with absolutely no compensation whatsoever, just offering a free preview of what's to come. there's nothing illegal about that.

i sell lottery tickets all the time. a person can win up to $599 (in ohio) without having to pay taxes on that. technically, you may have to report that as income, but it's impossible for the gov't to trace it at this point. just sayin'....

while i don't condone being illegal, i understand the philosophy, such as it is, behind it. i mean, it's cakes, right? not heroine. you know your place is clean and other than having some pencil-pusher tell you you're good to go, you're ready to make some money. you know your quality is there, your skillz are ready to be spotlighted. but, darn those pesky, seemingly aritrary laws and expensive licenses! not to mention the high start-up cost.... what's an otherwise law-abiding citizen to do?

well, i reckon that were i less than saintly and had every good intention in mind, my 'business model' would be something like checking into a cottage food law deal, and if that's not possible, sell some stuff under the table until i could afford the real thing. i might consider taking on a partner if i absolutely had to, or finding a retail space to share. (if it was me, i'd look for another entrepeneur that wanted sell cards and balloons and all that party crap that i have absolutely zero interest in.) hey, i'm not going to turn you in. icon_smile.gif that said, i understand only all too well how people operating these businesses out of their home hurts us who have gone the distance, expense and hassle of being legit. i also have a trophy/engraving shop, and these jokers set up in their garage are constantly undercutting my fair price. not that i don't get the customers back, but i lose some initial business, and that really just makes me... mad.

if you can accept the risk, do what you feel you have to do, i guess. sorry, i can't support that as a business, but i actually do understand the emotions and shady philosophy behind it. i also know that people will justify anything they want. i've always said people believe whatever fantasy makes them happy... even if it makes them miserable, meaning that in this case i have to fall on the side of the established professionals what did what they had to, pay out the nose for licenses and equipment, and suffer the gov't intrusion, silly rules, and flat-out personal offenses. hey, if it was easy, then everyone would do it. icon_smile.gif

here's the thing, though: you might that it's not quite so impossibly difficult as you think. honestly, most of these things begins with a few phone calls, and half of the gov't stuff can be done online these daze. not only that, but you might be surprised on the cost. is it essential that you have brand new equipment of everything? or can you start off with a few things, most of which you surely own already? do you have to be on the corner of the busiest part of town? do you have to use cardamom in every other recipe?

my food license which allows me to make food is up for renewal, it's about $175 this year. i have some extensive remodeling to do, and everything will have to be up to code. the worst part is stainless steel everything, but i'm a bargain shopper, an auction goer, and i know a lot of people that can help. it's still hard work and expensive, but i say if someone wants to be their own person free from the shackles of having some jerky boss and abiding by someone else's goofy rules, you should own a business the right way. the single benefit of going under the radar is saving money, and like i said, if your bakery can't support the expense, then perhaps baking cakes professionally isn't your bag. owning a small business is, after all, HARD! some people just don't have the stomach for it. i have two businesses and *still* work a crappy factory job (though it gets my wife out of having to work for someone else), and we still struggle more often than not. it's these personal sacrifices that most people can't handle in the long run.

my apologies for the long post. icon_smile.gif

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dreamacres Posted 12 Feb 2011 , 8:03pm
post #81 of 128

I believe there are three points here being discussed as one. 1} Your state does not have a cottage law, you are not able to sell cakes out of your home kitchen period, no exceptions, sorry about you luck. 2] Your state does have cottage laws and you are able to sell cakes out of a home based kitchen and must in writing inform the client that the cake was indeed prepared in a non-inspected kitchen. In my state I am very limited to recipes I can use, where I can sell, and am not able to operate this business on any level with a licensed kitchen. You are informed of tax laws in your state and are following them. 3}You are working out of a licensed kitchen and are operating under the laws and guidelines of your state. You have worked hard to met the many requirements of a licensed kitchen, are taking advantage of the extended market available to you and are reaping the benefits of that market to pay for the many additional expenses. If you are cakin' and receiving money you will fit into ONE of these areas. It is not multiple choice guys. We can not pick parts of one and apply it to ourself simply because of our desires. I do believe we all know what is legal whether we agree with it or not, deal with it. It sucks if your state does not have a cottage law, and for some I know they feel it sucks because their state does. Abide my the laws that apply to you, but don't you dare tell me you have the right to ignore them. My son is serving to protect your rights to try to make changes, work at doing so. Yes I am a proud military mother, not so proud of those that choose to dish my country or government over a cake or two

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leah_s Posted 12 Feb 2011 , 8:32pm
post #82 of 128

dreamacres,

I thank your son for his service.

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enchantedcreations Posted 12 Feb 2011 , 9:02pm
post #83 of 128
Quote:
Originally Posted by leah_s

dreamacres,

I thank your son for his service.





Amen

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Rachel5370 Posted 12 Feb 2011 , 9:41pm
post #84 of 128

Jasonkraft-
I was just saying that the lack of knowlege about food safety on the part of some people who would like to sell from home would create a need for more inspectors/inspections which would create a need for more government funding. I do see your point about more people=more fees. I think the fees and standards might need to be high- just like they are for commercial/legal bakers. Someone was saying something along the lines of the government just wanting a piece of everything. I am saying that regulation and supervision is needed when it comes to public health. I also believe that the more a person invests financially and otherwise in something- the more committed they are to doing it right. If it is too easy, there will be a bunch of people with lax standards making people sick. For me, there are health concerns that stem from producing food for sale in the family kitchen- for anyone, no matter how clean. Home-based baking- sure- but at least require a seperate kitchen. When there is a potential to cause illness or death- a license should definitely be required.

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Rachel5370 Posted 12 Feb 2011 , 9:53pm
post #85 of 128

Oh and here in Colorado at least- more fees do not equal more inspectors. We are so backlogged that an establishment can go 3 years without an inspection. If there is a complaint, then of course there is an inspection. Results are posted on a website, which is good overall. But say on the day of your inspection, someone leaves their coffee on a shelf above the prep table. Kinda yucky, I know, but an honest mistake that can happen to anyone. Well guess what? You just got a "Critical Violation" posted on the website with no detailed explaination. It is there with no chance for redemption for 3 years. But then again, maybe the general public doesn't read those things. Maybe just nerds like me, lol.

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KateLS Posted 12 Feb 2011 , 10:54pm
post #86 of 128

I haven't read through all the comments, but I thought I'd mention that when doing my taxes with Turbotax this year, they asked about any other income. And yes, "hobbies" was there. It totally made me think of forum threads like this.


But I do have a question, if a friend of mine wanted me to make a cake for her, and I gave her a list of all the ingredients, which she purchased, and then I made her a cake, the risk being taken is if poisoning or something happened and someone sued, correct?

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jason_kraft Posted 12 Feb 2011 , 11:22pm
post #87 of 128
Quote:
Originally Posted by KateLS

I haven't read through all the comments, but I thought I'd mention that when doing my taxes with Turbotax this year, they asked about any other income. And yes, "hobbies" was there. It totally made me think of forum threads like this.



From the IRS's perspective the main difference between a hobby and a business is that if you end up with a net loss, you can't deduct the loss from the hobby, but you can deduct the loss from the business (deducted against taxable income from other sources). You also can't deduct any hobby expenses unless they exceed 2% of your total adjusted gross income.

The IRS distinction between hobby and business has nothing to do with health department certification, and even if you have a licensed and inspected business the IRS may classify it as a hobby if you're not careful (see the link below):
http://www.businessknowhow.com/money/taxhobby.htm

Quote:
Quote:

But I do have a question, if a friend of mine wanted me to make a cake for her, and I gave her a list of all the ingredients, which she purchased, and then I made her a cake, the risk being taken is if poisoning or something happened and someone sued, correct?



If you are baking a cake for a friend's party, you are attending said party, and there's no business activity involved (for example, giving your friend an invoice or handing out business cards at the party and telling people you run a bakery and you made the cake), you should be fine. A riskier transaction would involve baking, decorating, and delivering a cake to the wedding of a friend of a friend (where you are not a guest) and accepting a cash payment under the table, even if the payment is just reimbursement for ingredients.

Of course anyone can sue anyone else for any reason, but a reasonable person would consider the former case as a favor for a friend, while the latter case looks a lot more like a commercial transaction.

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Torts Posted 12 Feb 2011 , 11:28pm
post #88 of 128
Quote:
Originally Posted by MadameRaz


actually, according to the IRS, even if you make 1$ doing anything, you must report it...granted, you are expected to report the expenses incurred making that 1$ thus perhaps no taxes would be warranted...but there is no state that allows a "minimum amount" of income before you have to report it. Granted, most people aren't going to go to this extreme to report earning one buck...but the IRS certainly is expecting each of us to report it. I just wanted to clear up anyone's confusion about "earnings less than X amount of dollars per year" not having to be reportable....I've heard that before from others but it's simply not true.
BTW...MB20fan.... icon_lol.gificon_lol.gificon_lol.gif (I'm now, literally eating popcorn at my desk, just waiting for the next scathing remark, icon_wink.gif )




Really? Mildly freaking out; when I worked for my University, one of my professors said we didn't even have to fill out our taxes if it was under a certain amount for dependents and a certain amount for independents. I didn't fill out my taxes for two years. The first year I got a call stating that actually I was over the threshold for dependents and would have to file, so I did, late. The next time, I'd worked for a couple months and was well under both thresholds, so I didn't bother with taxes, even though I would have gotten a refund. When I applied for a loan from the Federal Gov't they did question why I didn't fill out my taxes the prior year and I explained I was under the threshold. It satisfied them and I got the loan.

What exactly are the thresholds established for then, if not for filing purposes?

[This is totally unrelated to the rest of the post... I'm not selling cakes or anything!] But I hate tax law and thought I'd thoroughly looked into that when I didn't file.

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kristanashley Posted 12 Feb 2011 , 11:58pm
post #89 of 128
Quote:
Originally Posted by Torts

What exactly are the thresholds established for then, if not for filing purposes?



http://www.hrblock.com/taxes/tax_tips/tax_planning/doyoufile.html

Check this out if you want to know the thresholds for filing income tax. If you make under a certain amount, you don't have to file. Sales tax is another matter.

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jason_kraft Posted 13 Feb 2011 , 12:40am
post #90 of 128

If you are not someone's dependent there's really no reason not to file an income tax return, TurboTax costs $40 and it shouldn't take more than an hour for a simple return. If you are below the filing threshold, chances are good that you are leaving money on the table by not filing (thanks to the Earned Income Tax Credit).

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