Start-up info needed please

[imlswan]

I have had a hobby for the past couple of years which I have decided to
turn into a small home business. I plan on registering with my state as
a sole proprietorship, getting a tax number, resale license, doing
quarterly taxes, etc.

Back when I started this hobby, I purchased a computer and art supplies
that I would now like to use in this business. Is it legal for me, the
now small business owner to purchase the computer and supplies from me,
the former hobbyist? If this is something I can do, would I purchase
the items at the price I paid, current price of these items, or at a
used equipment price? Are there any particular tax issues that would be
unique to the situation? Thanks.

[John A. Weeks III]

Post by imlswan
Back when I started this hobby, I purchased a computer and art supplies
that I would now like to use in this business. Is it legal for me, the
now small business owner to purchase the computer and supplies from me,
the former hobbyist? If this is something I can do, would I purchase
the items at the price I paid, current price of these items, or at a
used equipment price? Are there any particular tax issues that would be
unique to the situation? Thanks.

If you were starting a corporation, this would be a great idea.
But with a sole proprietorship, you are the company, one and the
same. So, you may get a business write-off for buying from yourself,
you also have income at the personal level to claim. It ends up
being a wash.

The best way to do this is make sure that you turn a profit,
and the profit is your money after you pay taxes.

-john-

[J. Chris Tilton]

Post by imlswan
I have had a hobby for the past couple of years which I have decided to
turn into a small home business. I plan on registering with my state as
a sole proprietorship, getting a tax number, resale license, doing
quarterly taxes, etc.
Back when I started this hobby, I purchased a computer and art supplies
that I would now like to use in this business. Is it legal for me, the
now small business owner to purchase the computer and supplies from me,
the former hobbyist? If this is something I can do, would I purchase
the items at the price I paid, current price of these items, or at a
used equipment price? Are there any particular tax issues that would be
unique to the situation? Thanks.

Any assets you use to start your business, money, equipment, etc. are
part of your startup capital.