4 ms·

Why should a side hustle on etsy be taxed less than a side hustle working at the local coffee shop?

• LorenPechtel 5y ago
  The side hustle on etsy will likely have plenty of expenses that come off the income--but now you made the person do things like maintain inventory and the like. The compliance burden is a lot higher. I'd like to see some modified rules for sufficiently small businesses--no inventory, no depreciation, you simply take expenses when they are incurred. This would especially apply to service type businesses where your expenses are consumables and tool replacement.
  • PopAlongKid 5y ago
    There already are rules that avoid most depreciation in this case. The Tangible Property Regulations allow a De Minimis Safe Harbor expense deduction for assets purchased, such as a computer or office furniture. The max amount is $2,500.
• andrew_ 5y ago
  There's another reply in this post about a scenario of selling a couch on Craigslist, as an example. The burden that comes with a simple transaction is undue.
  • UncleMeat 5y ago
    Selling a couch on craigslist would easily be a "friends and family" transaction rather that a commercial one.
• deleted 5y ago
  [deleted]