hobby or business? I am reselling a product (office paper) to a business which will generate a 1099 (less than $5k). I purchase the retail product (add small mark up to cover costs of gas, time etc) resell and deliver to the business. I do this to generate airline miles. Cost vs sale of product will be less than $500 profit. If I deduct for auto expense/labor it will be less. I don't really want to have this as a business but am not sure if I can claim it as a hobby. My intent is to generate airline miles so I can travel...not make money.
If I can claim this as a hobby, where/how do I offset my (cost of goods?) to my 1099 misc income?
The reason I do not want to claim this as a business is I do not want to get involved with the city and a license. I am also not sure how long this will actually last. Perhaps another year but maybe even not that. |