Re: [APML] Tax Deduction for Hobby Expenses (US)

["Andy Wallace" <andywallace@home.com>]

They don't. I am a tax lawyer and even though I can't--and won't--give legal
advice over the net, Intuit is either wrong or Glenn is reading their
commentary wrong. To deduct expenses of an activity you MUST be in it to
make a profit. If you are showing losses for many consecutive years with no
profit years, you have a very difficult burden to overcome in convincing the
IRS that you have a "reasonable expectation" of a profit in the activity.
Question usually comes up with physicians and their horse "businesses".  :-)

Andy

----- Original Message -----
From: "warren and amy keller" <warhen@mindspring.com>
To: <astro-photo@seds.org>
Sent: Thursday, February 15, 2001 1:09 AM
Subject: Re: [APML] Tax Deduction for Hobby Expenses (US)


> You've got my attention. But why would the IRS subsidize people's pleasure
> activities? I don't get it? Thanks, Warren



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