Do you run the operation in a businesslike manner?
Editing Challenge 3
Revise the following message from a financial planner responding to an inquiry about eBay profits. The message suffers from proofreading, spelling, grammar, punctuation, wordiness, and other writing faults that require correction. Study the guidelines in the Grammar/Mechanics Handbook. Your instructor may ask you to use your own name as the writer/editor. Do not print these instructions.
ANDALUZ FINANCIAL PLANNING
CERTIFIED FINANCIAL PLANNERS
2230 GIBSON BOULEVARD SE
ALBUQUERQUE, NM 87108
[Insert current date and add line spaces below to center the letter on the page.]
Ms. Stephanie Jimenez
2509 Blake Road NW
Albuquerque, NM 87110
I just wanted to let you know that, as your Financial Planner, I’m happy to respond to your request for more information and clarification on the Tax status of eBay profits.
As you in all probability are all ready aware of, you can use eBay to clean out your closets or eBay can be used to run a small business. Your smart to enquire about your tax liability. Although there is no clear line that separates fun from profit or a hobby from a business. One thing is certin, the IRS taxs all income.
There are a number of factors that help determine whether or not your hobby should or should not be considered a business. To use eBay safely, the following questions should be considered:
1. Do you run the operation in a businesslike manner? Do you keep records, is your profit and loss tracked, and how about keeping a seperate checking account?
2. Do you devote alot of time and effort to eBay? If you spend eighteen hours a day selling on eBay the IRS would tend to think your in a business.
3. Some people depend on the income from their eBay activitys for their livelihood.
Are you selling items for more then they cost you? If you spend five dollars for a Garage Sale vase and sell it for fifty dollars the IRS would probably consider this a business transaction. All profits is taxable. Even for eBay sellers who are just playing around. If you wish to discuss this farther please call me at 256-1002.
Marcy Martinez [OR Your Name]
Certified Financial Planner
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