


     Is This A Business?


                                                  Gary Bryant


          So you've been taking my advice. Very good. You've  
     started paying close attention to these little  classified 
     ads.  As a matter of fact, you've bought  things so cheap 
     that you thought you were imagining things. 

          It started with the 1983 Volvo station wagon you bought 
     for three hundred dollars from a young woman who inherited it.  
     Two days after you got it home, your  father-in-law offered 
     you thirteen hundred for it!  Suddenly you were a thousand 
     dollars ahead.  

          Two weeks  later at a garage sale, you bought 6 ten-speed 
     bicycles  for five dollars each.  Your son overhauled each one,
     added some new paint. And with a classified ad, made a one 
     hundred and fifty dollar profit! It was slowly coming to you:  
     with a little initiative, a person  can make a profit from 
     classified ads.

         Is it a business? It could be. When you sell your  old car 
     or chest of drawers, you usually won't receive anywhere near 
     the same amount of money that you  invested in it.  For example, 
     you bought a new Honda  Accord for $9500. Three years later you 
     sold it  for $6000.  In this case, you took a LOSS of $3500.  
     You  obviously didn't make a profit.  And most states and  
     municipalities define a business as an enterprise  created 
     to produce a profit. 

        On the other hand, if you decide to peruse classified ads 
     on a regular basis, with the sole intent  to resell these 
     items at a higher price, you may indeed  be engaging in business.  
     At the very least, income that  you produce as profit may be 
     subject to city, state and  federal income taxes. And in some 
     cases, you may be  required to obtain a business license.  
     Check with the department of licensing in your city and state 
     and then proceed... legally! 
     
      
