I recently undertook the taxes for my first year of my home business. The taxman classed my business as "Passive Activity" rather than "Earned Income". Was it mis-classed, or are there any advantages to having it listed as passive?
Interesting! Do you have 1099's to file yet? That might make a difference as once those bad boys come in, the gvmnt sure likes to get their paws into it.
Yes, I gave the tax person my 1099. I am sure that classing it as Passive Activity will open up a can of worms for the IRS. No one else in La Bella Baskets has had this business classification. Please come and visit me in jail, lol.
haha! I wouldn't be too worried unless you made a whole bunch - like six figures or something. I will be checking into that tho, myself!