[Groop] Groop Losses from tshirts

[Rick Loomis]

>Date: Mon, 4 Jun 2007 17:20:22 +0100
>From: chris.emmett at hsbcib.com
>Subject: Re: [Groop] Shirts & Cards
>To: groop at groo.com
>Message-ID:
> 
><OF330A4796.18A88082-ON802572F0.0059356B-802572F0.0059B73E at hsbcib.com>
>Content-Type: text/plain;       charset="US-ASCII"
>
>I wonder if you can claim back the losses you make on T-Shirt and Card
>providing services against your taxes. I guess you're the one in the know
>though :-)
>
>Womble


In the US, you cannot deduct "losses" from a hobby from your income 
tax. Money you spend on a hobby is considered "entertainment", not a 
business expense. For him to deduct losses, he would have to have a 
business of selling and shipping Groo items.

Sadly, if he MAKES any money from his hobby, he DOES have to declare 
it on his US Income taxes (but in that case he can deduct any other 
losses from the same hobby from that amount before declaring it.)

That is, if he sells a surplus Groo item on ebay, or sells it to one 
of us for more than he paid for it, that is taxable income.

However, if one of us gives him an extra $5 because we think he has 
spent too much of his own money helping other Groo fans, that is a 
"gift" and not taxable.

So to recap: If Gary charges you an extra $5 for "handling fee" it is 
taxable income. If he charges only what he paid for something, and 
you throw in an extra $5 to "help out" it is not taxable.

Wasn't there a Groo comic once about income taxes? The whole US Tax 
system sounds like something Mark would make up to make fun of the 
government, only it's SERIOUS.

Rick
Not a Pirate