If you’re running a second business and making a genuine effort to be profitable, the IRS is pulling for you. (They want you to pay taxes.)
But if your second business was really created for the purpose of deducting personal expenses, you could be walking into a dangerous trap… the hobby-activity trap. You see, the IRS will define your pseudo-business as a hobby and attack your deductions. And that’s a fight you don’t want to get into!
How can you avoid getting into big trouble with Uncle Sam? You’ll get straight answers when you read my new article titled Tax Tips: Helping Daughter Creates Hobby That Kills Tax Deductions.
Three ways our fact-filled article can help you:
- We’ll tell you five ways the hobby-activity trap can hurt you. Believe me, it isn’t pretty. When the IRS comes after you, things get ugly and you could lose a lot of money as you’ll learn when you read the full article.
- You’ll learn a lesson from Patrick Schlievert’s sad story. Schlievert started a second business to help his daughter. Little did he know that he was walking right into the hobby-activity trap. By the time the IRS finished with him, the good doctor had lost all his deductions for the second business and racked up stiff penalties. We’ll tell you how to avoid his fate when you read the full article.
- You’ll learn how to stay out of trouble. You can stay out of the IRS’s sights if you know how to play the game the right way. There are several successful strategies you can use and we’ll explain them in detail when you read the full article.