Facing taxation problems is not at all uncommon for the American population. It is not at all surprising, given the complexity of the economic system of the United States, which is a leading superpower in the whole world. Economic opportunities abound and one such opportunity is the availability of multiple jobs for its citizens. This, of course, is by itself good. Except that for many individuals, holding multiple jobs and thereby having a multiple source of income can get to be a headache when it comes to taxation. Some barely have enough time for fulfilling their work obligations, and it is such a real trouble when the IRS runs after them for unintentional tax miscalculations.
BUSINESS OR HOBBY? Will the IRS allow you to deduct losses?
At one time or the other, most of us get involved in one kind of venture or another, sort of trying your hand at something different. Sometimes we make money in these ventures and the IRS can be counted on to expect its share of the profits. But what if you lose money in the venture, will you be entitled to a deduction on your return for the loss?