Question
Mr. Client tells you that he wants to turn his meteorite hunting hobby, which he loves, into a real business starting this year. You ask
Mr. Client tells you that he wants to turn his meteorite hunting hobby, which he loves, into a real business starting this year. You ask a few due diligence-type questions and find out the following: Over the past few years Mr. Client has found almost 50 real meteorites. Mr. Client has sold only two of those meteorites, one for $8,000, the other for $14,000. In addition to travel, Mr. Clients main expenses are for high-tech metal detectors and other tools around $12,000 over the last few years. Mr. Client does keep very careful books and records. Mr. Client plans to cut his hours at the plant (his day job, which he hates) during good weather so that he can spend even more time meteorite hunt-ing (hell make up the time during bad weather); he does not plan to quit his job, however, because he likes the medical insurance and 401(k) plan. Your most professional advice for Mr. Client?
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