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My wife makes T-Shirts with viral images. Her specialty is matching group shirts vacations. She sells a lot of shirts and has both a website
My wife makes T-Shirts with viral images. Her specialty is matching group shirts vacations. She sells a lot of shirts and has both a website and an ETSY account. She has bought product and paid herself. While discussing this with her and talking about the upcoming tax season I asked for her bank records for her business account. She told me that she just used her personal account for expenses and income. This is a side business and doesn't currently make enough income to support the household. The income just goes towards helping pay for our "fun" budget. What are the consequences of not having a separate account? will we have to view that money as hobby income? Is there anything I can do before EOY that would help us be able to deduct her expenses? 2. No deduction for a loss of sale on personal residence Is there a specific reason why this is the case? I get that they are not used for business, but homes are still the biggest source of "investment" people own. Now, people are starting to sell their houses for a loss more frequently than before. Is this one of those things where the law hasn't caught up with the real world or something just intentionally done?
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