Let me give you the bad news right at the top…
Tax reform has killed the ability for you to deduct your hobby expenses.
But — and this is an extremely important “but” — if you sell items as part of your hobby activity, the IRS allows you to deduct the cost of those items if you handle things the right way.
That’s right. Thanks to an obscure rule that the Tax Reduction Letter discovered, you can deduct the cost of the hobby items you sell. This can mean thousands of extra dollars in your pocket as you’ll learn when you read my new article titled Q&A: Loophole to Deduct Hobby Expenses after Tax Reform.
Three ways our fact-filled article can help you:
- We’ll tell you the importance of a sentence buried in IRS Regulation 1.183-1(e). It explains how, if your hobby activity involves selling items, you can determine your gross income. We’ll explain fully the money-saving implications of this when you read the full after-tax-reform article.
- We’ll tell you the two rules you need to follow. Luckily, these rules are quite straightforward and you’ll be able to take advantage of the tax loophole, easily. Want to find out what the rules are and make certain you stay in Uncle Sam’s good graces? Easy. Read the full after-tax-reform article.
- We’ll show you how to follow a simple formula for determining your cost of goods. There are four steps involved but we’re not talking rocket science. We’ll provide a chart that will make everything clear at a glance when you read the full article.