Article Highlights: Hobby LossesNot-for-Profit RulesDetermining Factors Trade or Business PresumptionHobby Tax ReportingSelf-Employment Tax Generally, when individualshave a hobby, they have it because they enjoy it and are not involved in their hobby with the goal of making money. In fact, most hobbies never make money or don’t even create any income, for that matter. … [Read more...] about Tax Issues Related to Hobbies
What Is the Statute of Limitations on Unpaid Taxes?
If you have unpaid taxes that you haven't yet been making payments toward, it might make you fearful that the IRS will come a-knocking one day to collect on what you owe. Tax debt can quickly snowball from interest, penalties, late fees, and the amount of the taxes due. However, a lot of the scaremongering surrounding the IRS is largely sensationalized in media and … [Read more...] about What Is the Statute of Limitations on Unpaid Taxes?
Earned Income Tax Credit: Used, Abused and Altered
Article Highlights: Purpose of the Earned Income Tax CreditQualifications Earned IncomeQualified ChildCredit Phaseout Computing the CreditInvestment Income LimitCombat Pay ElectionFraudSafeguards Any discussion of the earned income tax credit (EITC) needs to begin with a discussion of why Congress created it in the first place. It has a twofold purpose: first, as an … [Read more...] about Earned Income Tax Credit: Used, Abused and Altered
Disaster-Related Tax Losses May Be Less Than Expected
Article Highlights: Limitation to Losses within Disaster AreasCost versus Market ValueHome Tax LossesHome Tax GainsReplacement PropertiesHome Gain Exclusion The late-2017 tax-reform package changed the rules for personal casualty losses, which now are only deductible if they occur in a federally declared disaster area. As a result, if a home is destroyed in a forest fire … [Read more...] about Disaster-Related Tax Losses May Be Less Than Expected
October Extended Due Date Just Around the Corner
Article Highlights: October 15 is the extended due date for filing federal individual tax returns for 2018.Late-filing penalty Interest on tax due. Other October 15 deadlines. If you could not complete your 2018 tax return by the normal April filing due date and are now on extension, that extension expires on October 15, 2019. Failure to file before the … [Read more...] about October Extended Due Date Just Around the Corner