Hobby Loss Court Ruling

  • By Tom Grafton
  • 09 Dec, 2016

An April court ruling in favor of the taxpayer allowing 8 years of small business losses demonstrates once again the importance of:
• Exhibiting a bona fide motive to make a profit and reasonable
  steps to grow the small business
• Lack of elements of personal pleasure or recreation in the small business
• Adequate record keeping for tax deductions claimed

By Tom Grafton 09 Dec, 2016
We’ve discussed fraudulent calls to taxpayers claiming immediate payment is required to avoid jail, asset seizure, etc. by IRS. Now the crooks are utilizing computerized voices (robocalls) to make these fraudulent demands. My personal experience includes calls from multiple locations in California, Michigan, Wisconsin, New York, and small towns in Nebraska. Our advice is the same; the IRS does not do business this way. Tax collections are made by U.S. mail or in person by Revenue Agents that have official documentation/badges to share with you. Don’t respond to these calls, hang up!
By Tom Grafton 09 Dec, 2016
As you know, the IRS Get Transcript site was attacked by hackers in 2014 and 80,000 taxpayers personal information was compromised. In response, the IRS took down the site and now has implemented a more comprehensive multi-authentication process to access this information. See   irs.gov   fact sheet 2016-20 for detailed outline of what you need to do to successfully access Get Transcript online.
By Tom Grafton 09 Dec, 2016
Street and bridge construction has finally progressed to a point where 56th is open one lane each way. Our thanks to the city and its contractors for making this happen.
By Tom Grafton 09 Dec, 2016

An April court ruling in favor of the taxpayer allowing 8 years of small business losses demonstrates once again the importance of:
• Exhibiting a bona fide motive to make a profit and reasonable
  steps to grow the small business
• Lack of elements of personal pleasure or recreation in the small business
• Adequate record keeping for tax deductions claimed

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