Tax Tip #8 Suspicious Activities

Hobbies vs Business

The IRS considers the following activities
suspicious because they involve significant
personal pleasure:

Automobile Racing
Training and Showing Dogs
Raising Show Horses
Record Recording
Ministerial Duties
Writing
Travel Business
Stamp Collecting
Antique Collecting

I am not a tax attorney or CPA. Please
consult one for more information.
"Lower Your Taxes Big Time" by Sandy Botkin
is a great resource book.

Tax tip #7 Hobby or Business

One important factor in deeming your activity a hobby or business is to show that you entered into the activity with the objective of making a profit.
Not saying you have to make a profit but sincere purpose of entually making a profit.
A business plan, records, conducting in a business manner, devoting regular time to your business (at least 10 hours per week) will help you proove your efforts in deeming a business and not a hobby.
I am not a tax expert.

Please consult a tax attorney or CPA for more details.
A great book to read: "Lower Your Taxes Big Time" by Sandy Botkin

Tax Tip # 6>> Meal tips

When you are out at a business meeting luncheon (or any time) your tips are 100% tax deductible.

*Always consult a tax attorney or CPA. "Lower Your Taxes Big Time" by Sandy Botkin is a great resource.

Tax tip #5 hire your children

From age 7 to under 18. The wages paid are deductible. Of course documentation is needed!
You must have a taxpayer ID # from the IRS.
Hire your children and deduct the equivalent their education- now that's great!
As stated in previous post for details consult a tax attorney or consultant.

Tax tip #4 Lodging

You do not need receipts for traveling expenses under $75 per expense (documentation is needed) but you do need lodging receipts!
Important to keep a good diary and here's some good advise- keep all receipts anyway!

As mentioned I am not a tax attorney or CPA please acquire tax advise! These tips are summarized. Sandy Botkin has a great updated tax book out "Lower Your Taxes Big Time"