Skip to Content.
Sympa Menu

market-farming - Re: [Market-farming] Another IRS question

market-farming AT lists.ibiblio.org

Subject: Market Farming

List archive

Chronological Thread  
  • From: "breck" <bcarden AT breckinridgegroup.com>
  • To: "'Market Farming'" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Another IRS question
  • Date: Wed, 6 Jan 2010 17:51:06 -0500

Here is some info about hobby businesses.
___________________________________


http://www.irs.gov/businesses/small/article/0,,id=208400,00.html

"In general, if a taxpayer has hobby income and expenses, the expense
deduction should be limited to the hobby income amount. About 1.5 million
taxpayers, many with significant income from other sources, filed form 1040
Schedules C showing no profits, only losses, over consecutive Tax Years 2002
- 2005 (4 years); 73 percent of these taxpayers were assisted by tax
practitioners. By calming these losses to reduce their taxable incomes,
about 1.2 million of the 1.5 million taxpayers potentially avoided paying
$2.8 billion in taxes in Tax Year 2005. Changes are needed to prevent
taxpayers from continually deducting losses in potentially not-for-profit
activities to reduce their tax liabilities."

It is important to note that the report limited their review to Schedule C's
with four years of consecutive losses and to total income sources of
$100,000 or greater. It did not cover Schedule F farm activities nor did it
cover any type of entity other than the 1040.
___________________________________

http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_183

____________________________________



Breck

-----Original Message-----
From: market-farming-bounces AT lists.ibiblio.org
[mailto:market-farming-bounces AT lists.ibiblio.org] On Behalf Of
sunnfarm AT netscape.com
Sent: Friday, January 01, 2010 10:48 AM
To: Market Farming
Subject: Re: [Market-farming] Another IRS question

I just received a notice that might be of interest to many on this list. The
IRS adopted Section 183, called Activities not engaged for profit. Its also
known as the "hobby loss rule". It will put an end to deducting losses from
hobby farms and other not for profit home businesses... Bob.

--- allan.balliett AT gmail.com wrote:






Archive powered by MHonArc 2.6.24.

Top of Page