Saturday, April 3, 2010

taxes

Doing federal taxes. Torn between wanting to lose more money so that our tax bill won't be so high, and being horrified that I didn't make more profit for all that work. If I'm really going to make a living from this, I need a much better profit than I'm currently showing.

It seems like every year is always a "building" year. Last year I had to buy tons of undyed yarn and display stuff for the booth. This year, I'm going to overhaul the look of the booth (those little wire cubes take WAY too long to put together) so some of those sunk costs are not going to be amortized.

But something definitely needs to change this year. Either I need to enjoy my day job more (and scale way back on the dyeing) or I need to quit the day job and focus just on dyeing. Huckleberry Knits is currently a tax liability--jacks up our tax bill way too much--yet doesn't provide enough profit to support me in the lifestyle to which I've become accustomed, as they say. It's certainly not a lavish lifestyle by any means. Our bills are only the essentials--no cable TV, and just a $20 prepaid cell phone. No consumer debt.

Yet I still have a mortgage to pay, and a child whose interests and talents I want to nurture. I'm looking into piano lessons for him now, and unless I find a teacher who would like yarn for payment, that's probably about $20/week. There's a monthly sports class for him (this month it's swimming), and once he hits school-age, sports costs are going to skyrocket.

I just don't know. I always do this soul-searching at tax time, and never come to any conclusions.
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