Re: Economic Stimulus Package
The tax code is such a screwy thing... I've been wondering if you could claim our hobby as a tax deduction w/o having a business license. So, if you've spent more money on the hobby than you've made, can you claim that all as a deduction? Snake food, racks, snakes, etc?
Re: Economic Stimulus Package
Re: Economic Stimulus Package
Quote:
Originally Posted by
bait4snake
The tax code is such a screwy thing... I've been wondering if you could claim our hobby as a tax deduction w/o having a business license. So, if you've spent more money on the hobby than you've made, can you claim that all as a deduction? Snake food, racks, snakes, etc?
Yes and no the way my CPA originally explained it to me. If you claim anything as a loss as a "hobby" for more than 3 you will get a letter in the mail from Uncle Sam. Show a profit on that hobby at the 3 year mark and your fine. Again, I may be wrong but the way it was told to me is that the irs allows "hobby" deductions for something that you plan on becoming a business but don't have the resources to completely follow threw with at that time. After 3 years of losses, its just a hobby and a no no to wright off anymore.
Check with your account and have them sign off on it, buy the audit protection :)
Don't ever hide profits though, a mid level breeder here in FL who has been producing for 10 + years just got caught. 3 money loosing breeding operations (according to tax records) under 3 different federal EIN numbers = one entity = you were hiding something and now your going to pay for it..... $37K plus penalties and interest adds up to a much bigger number than you would think.
Taxes are a good thing to pay, you only pay them if you actually make money, so the higher your tax bill, the more you made..... (thats at least what I tell myself laying in bed at night waiting for the check to clear trying decide if I should put a stop payment on it and run to Mexico or not:D).
Re: Economic Stimulus Package
Ive been thinking about this as well... I have invested some $$ in BP's but did not claim that on my taxes this yr... my plan is to not claim my profits until i break even... so I invested X and until I make back X amount of $$'s I'm not going to claim anything. Im not sure if thats a good idea or not, hopefully someone will chime in. Also I plan on registering as a business in NY but it didnt make much sense to fill out the paper work this yr when ill have 0$ in sales since my snakes arent breeding till this Nov. so I plan on registering all that good stuff next yr(09).
Re: Economic Stimulus Package
Quote:
Originally Posted by
JoshJP7
Ive been thinking about this as well... I have invested some $$ in BP's but did not claim that on my taxes this yr... my plan is to not claim my profits until i break even... so I invested X and until I make back X amount of $$'s I'm not going to claim anything. Im not sure if thats a good idea or not, hopefully someone will chime in. Also I plan on registering as a business in NY but it didnt make much sense to fill out the paper work this yr when ill have 0$ in sales since my snakes arent breeding till this Nov. so I plan on registering all that good stuff next yr(09).
I would think it's best to get your two free years of deductions. After 3 years once you start paying taxes on profits, you will still get your deductions subtracted before it's figured out what you will owe. No reason not to take the little bit of money back while you can.
Re: Economic Stimulus Package
ive ben out of work since dec. due to my hand.so the best thing i can do is catch up on the bills....
Re: Economic Stimulus Package
Putting this into savings is absolutely the worst thing. They're sending this out for people to SPEND it and put money into the economy...not stash it away..
Re: Economic Stimulus Package
Quote:
Originally Posted by
JoshJP7
Ive been thinking about this as well... I have invested some $$ in BP's but did not claim that on my taxes this yr... my plan is to not claim my profits until i break even... so I invested X and until I make back X amount of $$'s I'm not going to claim anything. Im not sure if thats a good idea or not, hopefully someone will chime in. Also I plan on registering as a business in NY but it didnt make much sense to fill out the paper work this yr when ill have 0$ in sales since my snakes arent breeding till this Nov. so I plan on registering all that good stuff next yr(09).
BAD idea......
If for any reason you are audited, they will see income much quicker than they will see expense from previous years and either way its tax evasion....
So year one you "loose" 10K
Year two you make back 5K
Year three you Make 10K
Unless this is all cash, not checks, paypal, money orders or credit cards, it will hit your account. IRS will then see the $15k came in and you only reported 5K.
Show your lose, show your earnings.....
Re: Economic Stimulus Package
Ight so heres the thing... I spent X amount of dollars on my investment in 06/07... didnt claim that this yr... are you saying next yr I claim that $$ I spent on my 08 taxes?
Re: Economic Stimulus Package
Quote:
Originally Posted by
ShawnT
Putting this into savings is absolutely the worst thing. They're sending this out for people to SPEND it and put money into the economy...not stash it away..
What are most Americans going to buy that is going to stimulate OUR economy? That big screen you wanted...made in China. An over whelming majority of people will buy things that won't help our economy to begin with. I'm ready for these clowns to be out of office.
The package is a bad idea to begin with, I'd take my extra money and invest it and make more back on my free money.
