Keep Your Home Business a Tax Chomping Machine
CRITICAL STEPS TO MAINTAINING BUSINESS STATUS WITH THE IRS
By: Sandy Botkin, C.P.A.
So, you finally decided to start your own part-time home business. You have gathered sufficient inventory and equipment to run it. You have a marketing plan of attack to make lots of money, and all you need to do to keep the IRS off your back is save all receipts, right? WRONG!!
One of the IRS’s favorite weapons is to treat a home business as a hobby, not as a legitimate business. Even if you have all the receipts in the world, classification of your endeavor as a hobby will limit your “business” deductions to the income from the activity. If the deductions exceed your activity’s income, the excess is completely eliminated! Read more
Translator
By N2H -
-
