Selling plasma

[cathyan]

If someone sold their plasma for 10 months out of a year, and did it because they needed the money, would you consider this a Sch C, or "other income"?

Granted, it's not much money, but $80 a month could go a long ways toward feeding a person (here, anyhow), and it meet the "regular and continuous activity done with a profit motive".

What about partcipating in clinical studies where one is paid to let them 'experiment' on you?

I would want to say other income, but what about cases where it is the person's only income? You can make good money on the clinical studies, and can pick which ones you want to participate in. This economy has a people doing a lot of things to get by. At least they are being honest and telling me about this income.

[JohnH]

Maybe, maybe not. I've seen it argued both ways with equally convincing positions.

You might want to check out a 1980 case - Green, 74 T.C. 1229. She had a rare blood type and was selling her blood 95 times a year. There wasn't any question about her being in business (she clearly was) - the case revolved around the deductibilty of a special high-protein diet she had to eat. But it might provide some basis to hang your hat on the concept of it being earned income.