I am interested in starting a minimalist small business to make a little money and for tax advantages. I would like to do it in a fully legitimate way so that if I am ever audited by the IRS, I have nothing to worry about. Has anyone looked into this and found the optimum path?
My current idea which I'm sure plenty of people have thought of is to sell homemade craft items and/or sell/flip other items related to my interests. By having it related to my interest and with things I already do, I don't have to expend as much effort in the process. The other half of this equation is that the craft items would be used to decorate my house, so that I don't waste my money on expensive art, etc... and then all of those decoration items would also be for sale. I have a small room in my house which I could dedicate solely to these activities, and then claim a home office deductions. Does anyone understand how much profit you actually have to make?
Anyone know what other tricks are out there? If I took a class to practice my craft, could that be a business expense or is that too much of grey area because it can be viewed as a leisure activity as well.
