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Category - Hobby Versus Business

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3 out of 5 Test

  • Date: June 18, 2021
  • By: cyberbasement
  • Categories: Hobby Versus Business
By generally accepted definition, if you are profitable 3 out of the last 5 years your activity is automatically considered a legitimate business. Essentially turning a profit is the best way to show your profit motives (sorry for stating the obvious[...]
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WCG

Hobby Versus Business Testing

  • Date: June 18, 2021
  • By: cyberbasement
  • Categories: Hobby Versus Business
The hobby versus legitimate business is a common question. First, the IRS suggests that incorrect deduction of hobby expenses account for a portion of the overstated adjustments, deductions, exemptions and credits that add up to $30 billion per year [...]
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WCG

Philosophy of Business Losses

  • Date: June 18, 2021
  • By: cyberbasement
  • Categories: Hobby Versus Business
As any politician and economist will tell you, the key to a healthy economy is the strength of small businesses. Small businesses innovate, are typically the first ones to hire and have a unique way of becoming major players in local communities. [...]
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WCG

Private Track Coach Deducts Business Losses for Eight Years, Court Says OK

  • Date: June 18, 2021
  • By: cyberbasement
  • Categories: Hobby Versus Business
In a proceeding brought to the Tax Court under Docket 21600-11S filed October 25, 2012, a track coach in Oregon reported consecutive losses on eight tax returns starting in 2003. The IRS examined three tax returns starting with 2006, declared the [...]
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WCG

WCG (formerly Watson CPA Group) Philosophy on Hobby Losses

  • Date: June 18, 2021
  • By: cyberbasement
  • Categories: Hobby Versus Business
We cannot ethically allow you to deduct continued business losses year after year unless you understand and agree with the information contained in this article. We also have a legal responsibility as paid tax preparers to follow tax laws and [...]
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