A crafty question

[JG EA]

Do you use Code 454390 (Direct Sales) on a Sch C for someone who make crafts and sells them at craft shows?

[Black Bart]

Well,

it looks to me like the only thing in the list that could possibly fit your situation.

Choices are always limited in this (my opinion) sorry list of half-listed/non-listed occupations that people actually work at and quite a few common jobs are not listed at all.

I think some government bureaucrat must have dreamed it up -- if you can believe it, they (government) define a small business as "any establishment with gross receipts under five million dollars."

[JG EA]

Thanks! Quick reply. I would have been happy to reply to your question, but I didn't know the answer.

But it is a business deduction and it is part of the adjustments section - not a credit or anything so for what it is worth I'd say yes.

[Snaggletooth]

Lots of These

I believe there to be many of these "crafts" people. They go to Festivals, Public Square Celebrations, Ice Cream Suppers, etc. If any of them make any money, I don't know of any. I do take losses for them for a couple years because they talk about big money coming their way, then after a couple years they have to make a compelling argument about profits (with evidence and trends) for me to allow any more losses.

The six-digit bureaucratic creation is the "NAICS Code" an acrostic for something like North American Industrial Classification. Allows the Dept of Commerce to pigeon-hole all activities, also determines standard sizes for Govt-driven Small Business qualifications and opportunities. For me, it's just another PITA, having to stop the bus long enough to look down this long list so my clients can be pigeon-holed.

[dyne]

The ONLY purpose for the business codes is to advise IRS if the taxpayer is in a business
which IRS has found to be a category which has been found to omit income or claim unallowable deductions, etc. The business codes are then only NEGATIVE. A preparer friend tends to enter 999999 often and I am beginning to do that also since the list is so long and so difficult to use and there is NO benefit to me or the taxpayer in spending much time trying to find a code which is appropriate. In other words certain business codes INCREASE
the taxpayers chance of being audited by IRS.