Going Into Business or Not

#6 01-21-2005, 01:20 PM

"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote

- quote -

> You are correct in your memory, Paul. But a store front is
> not necessary to have gone into business is my point.

Yeah, but "one burger"? Did this guy give up quickly or what?

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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#5 01-19-2005, 02:51 PM

Paul A Thomas wrote:
- quote -

> "Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote

> > Good good. So we (mostly) all agree, he's in business, and
> > by extension, subject to all the taxes which come with it,
> > e.g. SE tax.

> Sounds like he lost money though.

> > Remember the Illinois painter who took just that one paint
> > job and maintained he was not in the trade or business and
> > IRS wanted SE tax? But he won? What's the difference?
> > (grin)

> If I remember the case, he didn't try to open a painting
> business. Where the OP tried to open a restaurant/burger
> joint.

You are correct in your memory, Paul. But a store front is
not necessary to have gone into business is my point.

Just thought I'd throw a ringer onto the pile.

(grin

ChEAr$,
Harlan Lunsford, EA n LA
Tue, 18 Jan 2005

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#4 01-18-2005, 07:45 PM

"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote

- quote -

> Good good. So we (mostly) all agree, he's in business, and
> by extension, subject to all the taxes which come with it,
> e.g. SE tax.

Sounds like he lost money though.

- quote -

> Remember the Illinois painter who took just that one paint
> job and maintained he was not in the trade or business and
> IRS wanted SE tax? But he won? What's the difference?
> (grin)

If I remember the case, he didn't try to open a painting
business. Where the OP tried to open a restaurant/burger
joint.

*One burger*?

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#3 01-18-2005, 09:03 AM

Paul wrote:
- quote -

> <menawach[at]msn.com> wrote

> > An individual opens a cafe and sells one hamburger in a week
> > and decides that the restaurant business is not for him and
> > closes down. Pub 535, page 3, states: "IF YOU DO NOT GO
> > INTO BUSINESS. If you are an individual and your attempt to
> > go into busines is not successful, the expenses you had in
> > trying to establish yourself in business fall into two
> > categories." The pub then list the two types of categories.
> > > Did the individual actually go into business or did he
> > attempt to go into business?

> Sounds like he actually was in business.

Good good. So we (mostly) all agree, he's in business, and
by extension, subject to all the taxes which come with it,
e.g. SE tax.

Remember the Illinois painter who took just that one paint
job and maintained he was not in the trade or business and
IRS wanted SE tax? But he won? What's the difference?
(grin)

ChEAr$,
Harlan Lunsford, EA n LA
Mon 17 Jan 2005

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#2 01-15-2005, 06:23 PM

menawach[at]msn.com wrote:

- quote -

> An individual opens a cafe and sells one hamburger in a week
> and decides that the restaurant business is not for him and
> closes down. Pub 535, page 3, states: "IF YOU DO NOT GO
> INTO BUSINESS. If you are an individual and your attempt to
> go into busines is not successful, the expenses you had in
> trying to establish yourself in business fall into two
> categories." The pub then list the two types of categories.
> Did the individual actually go into business or did he
> attempt to go into business?

The answer is in the opening sentence of your post. "An
individual opens a cafe and sells...." The individual went
into business.

--
Alan
http://taxtopics.net

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#1 01-15-2005, 06:03 PM

menawach[at]msn.com wrote:

- quote -

> An individual opens a cafe and sells one hamburger in a week
> and decides that the restaurant business is not for him and
> closes down. Pub 535, page 3, states: "IF YOU DO NOT GO
> INTO BUSINESS. If you are an individual and your attempt to
> go into busines is not successful, the expenses you had in
> trying to establish yourself in business fall into two
> categories." The pub then list the two types of categories.
> Did the individual actually go into business or did he
> attempt to go into business?

This reminds me of an old sexually oriented joke told in
mens' locker rooms, something to the effect that if you do a
certain thing even ONE time, then you ARE one.

So, sell that first burger, and you're in business!

ChEAr$,
Harlan Lunsford, EA n LA
Fri, 14 Jan 2005

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01-15-2005, 05:25 PM

<menawach[at]msn.com> wrote

- quote -

> An individual opens a cafe and sells one hamburger in a week
> and decides that the restaurant business is not for him and
> closes down. Pub 535, page 3, states: "IF YOU DO NOT GO
> INTO BUSINESS. If you are an individual and your attempt to
> go into busines is not successful, the expenses you had in
> trying to establish yourself in business fall into two
> categories." The pub then list the two types of categories.
> Did the individual actually go into business or did he
> attempt to go into business?

Sounds like he actually was in business.

--
Paul A. Thomas, CPA
Athens, Georgia

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 01-14-2005, 09:58 PM

An individual opens a cafe and sells one hamburger in a week
and decides that the restaurant business is not for him and
closes down. Pub 535, page 3, states: "IF YOU DO NOT GO
INTO BUSINESS. If you are an individual and your attempt to
go into busines is not successful, the expenses you had in
trying to establish yourself in business fall into two
categories." The pub then list the two types of categories.

Did the individual actually go into business or did he
attempt to go into business?

Ricardo Smith, EA
Dunlap TN

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