In response to:

On Business Dave Says

conservative_librarian Wrote: Jan 03, 2013 9:46 AM
Jim needs to work on his reading comprehension. Dave specifically used the IRS definition, if you have an issue with 'his opinion' then take it up with the IRS. With regard to the solar panel industry, Volt etc... you are not properly applying the term profit. A profit is only having greater receipts than expenses over a calendar year. Sure the income generated from purchases of Volts of panels doesnt directly cover the costs, but (sales + subsidies) - expenses = PROFITS
Don664 Wrote: Jan 03, 2013 7:39 PM
Volts don't make a profit. They're subsidized vehicles. Any thing that is subsidized is a net lost to the taxpayers.

Dear Dave,

In your opinion, how do you know when a hobby officially becomes a business?

Dan

Dear Dan,

This is a great question. But when it comes to something like this, my opinion doesn’t matter nearly as much as what the Internal Revenue Service says.

According to the IRS, if you run a business for two years or more without making a profit, then it is not a business. You have to become profitable at some point. Otherwise, the IRS will declare your endeavor a hobby. Personally, I think that’s a pretty good marker. I mean, if you’re making...