Quote:
Originally Posted by Aquarian Sports Cards
Problem is you just said two different things as goals.
1. Do it gradually and enjoy the process.
2. Sell it as a means to raise money and enjoy retirement.
There's a time value to money. The same reason the lottery offers you more if you take your win over time applies here. Again to use your round numbers $100,000 today is worth a lot more than $10,000/year for 10 years.
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I see what you're saying and have considered that as well. I don't think either approach checks every box. I'm just trying to figure out which one checks the most.
I guess the unanswered question for me is, can you sell for 10 years making 10K per year without the IRS saying hey wait a minute...You're a business. I don't know if they're as concerned about that scenario. At the end of the day, isn't the hobbyist paying higher taxes than a business would (assuming equal sales)?
If that's the case and if the net result (ie net gain) of one over the other is relatively close, but one saves me a lot of additional record keeping, then I guess I'll have my answer.