Category - 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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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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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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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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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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