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Tax Treatment of Income from Hobbies

Leave a comment Ordinary and Necessary Expenses

Countless Americans take pleasure from hobbies that also generate income. Collectibles of all types have skyrocketed in popularity, as well as income potential, in the last fifty years. Whether its dolls, baseball cards, stamps, coins, or Star Trek action figures, all types of hobbies have the potential to generate some amount of income, which, of course, is taxed by Uncle Sam.

The rules for reporting the income and expenses associated with a “hobby” depends upon whether or not the activity in question is a hobby or business. There are deductions that hobbyists may claim but they, like most everything, are subject to special rules and limits imposed by the Tax Code.

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Start Your Year-End Tax Saving Moves Now – Here’s How Part 2

Leave a comment Expenses Deductions, Tax Attorneys, Tax Credit

It’s already fall and before you know it, another year wil be upon us. It’s never too early to plan ahead to minimze your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the second part of a two-part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Accelerate deductions
This is a preview of Start Your Year-End Tax Saving Moves Now – Here’s How Part 2. Read the full post (439 words, 1 image, estimated 1:45 mins reading time)

Start Your Year-End Tax Saving Moves Now – Here’s How Part 1

Leave a comment Expenses Deductions, Tax Attorneys, Tax Credit

It’s already fall and before you know it, another year will be upon us. It’s never too early to plan ahead to minimize your tax bill. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Here is the first part of a two part series on some things to ponder when considering potential tax moves between now and the end of 2016:

  1. Make time to plan
This is a preview of Start Your Year-End Tax Saving Moves Now – Here’s How Part 1. Read the full post (426 words, 1 image, estimated 1:42 mins reading time)

Apple Owes Ireland $15 Billion In Taxes. Ireland Doesn’t Want The Money

Leave a comment Corporate Tax, Foreign Corporations, Tax Attorneys

In late August, the European Commission ruled that Ireland must collect $14.5 billion in back taxes from Apple. The antitrust regulator for the European Union claimed that Ireland had given Apple an extremely favorable tax arrangement for over ten years allowing the tech giant to pay a tax of less than 1 percent. The EU further claimed that Apple had two companies in Ireland with a head office that existed only on paper, but received all of Apple’s European profits. The ruling fuels the debate about multinational corporate existence and tax responsibility worldwide.

This is a preview of Apple Owes Ireland $15 Billion In Taxes. Ireland Doesn’t Want The Money. Read the full post (436 words, 1 image, estimated 1:45 mins reading time)

The “What Ifs” for Struggling Taxpayers

Leave a comment Civil Liabilities, Civil Penalties, Delinquent Taxes, Installment Agreement, Tax Attorneys, THORGOOD Law Firm

Many of life’s events such as losing a job, foreclosure of a home or even forgiveness of a debt impact the payment of taxes. The tax law offers hope in these situations. As an example, if a taxpayer’s income decreases, he or she may be eligible for certain tax credits, such as the Earned Income Tax Credit. In this blog, We will present a list of quick answers to life event situations that have a potential impact on an individual’s tax burden. For more information see our blogs: Part 1 – What If: Job Related Life Events and Struggling Taxpayers; and Part 2 – What If: Debt Related Life Events and Struggling Taxpayers.

This is a preview of The “What Ifs” for Struggling Taxpayers. Read the full post (526 words, 1 image, estimated 2:06 mins reading time)

What Is Foreign Earned Income? Am I Eligible to Claim Either the Exclusion Or Deduction?

Leave a comment Foreign Earned Income

Individuals that are U.S. citizens or resident aliens of the United States living abroad are taxed on their income by more than one governmental entity. However, these taxpayers may qualify to exclude from their income an amount of their foreign earnings (adjusted annually for inflation) under I.R.C. § 911. They may also be eligible for either a foreign housing exclusion or the foreign housing deduction (this will be discussed in a future blog). To determine eligibility to claim either the foreign earned income exclusion, the foreign earned housing deduction or foreign earned housing exclusion, please consider the following analysis. Remember, that an experienced tax professional can offer assistance in making this analysis.

This is a preview of What Is Foreign Earned Income? Am I Eligible to Claim Either the Exclusion Or Deduction?. Read the full post (344 words, 1 image, estimated 1:23 mins reading time)

IRS Launches New Campaign to Increase Awareness Of Data Theft Risks

Leave a comment Data Theft, Identity Theft, Tax Scams

Recently the IRS together with state tax agencies and the nation’s tax preparers warned that criminals are focusing their cyber theft crimes on tax professionals. Anyone that is a potential target of these cybercriminals should respond appropriately to protect clients from identity theft.

With this issuance of caution, the IRS provided new information containing safeguards to help tax professionals protect clients’ data. Known as the Protect Your Clients; Protect Yourself campaign, it’s an expansion of the Security Summit’s 2015 Taxes. Security. Together program aimed at increasing public awareness for using security software, creating stronger passwords and avoiding phishing emails.

This is a preview of IRS Launches New Campaign to Increase Awareness Of Data Theft Risks. Read the full post (336 words, 1 image, estimated 1:21 mins reading time)

A Discussion Of New York State Income Tax Credits

Leave a comment New York Income Tax, New York State Tax, New York State Tax Law, Tax Credit

Individuals and businesses in the State of New York are both subject to income tax. New York enacted a sweeping tax-reduction bill in 2011, creating the lowest mid-bracket tax rates in the state in 58 years. These tax breaks affected over four million taxpayers. Despite this legislation and other New York tax breaks, New York still has one of the highest state income tax rates in the nation.

New York Personal Income Tax

This is a preview of A Discussion Of New York State Income Tax Credits. Read the full post (446 words, 1 image, estimated 1:47 mins reading time)

A Discussion Of New York State Income Tax Deductions

Leave a comment New York Income Tax, New York State Tax, New York State Tax Law

Income tax deductions are expenses that may be deducted from pre-tax gross income. Of course, deductions reduce New York income tax and maximize a refund. One of the experienced tax professionals at the Thorgood Law Firm can assist any New Yorker in determining the deductions for which they qualify under New York law.

New York has a standard state income tax deduction. For 2015, they are as follows:

Filing Status Amount  of Standard Deduction
Single (and can be claimed as a dependent on another taxpayer’s federal return) $3,100
This is a preview of A Discussion Of New York State Income Tax Deductions. Read the full post (375 words, 1 image, estimated 1:30 mins reading time)
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