A hobby can be a lot of fun. But not when the IRS gets involved.
You see, when you’re engaged in what the IRS defines as a hobby, Uncle Sam can tax all your hobby income and at the same time disallow every penny in hobby deductions!
But there’s hope! Thomas A. Gullion won more than $17,000 in tax benefits when the court ruled that his music-business tax-losses were fully deductible as business losses.
How did Mr. Gullion win his important case? You’ll find out when you read my new, free article titled Tax Tips: Music Business Beats the Unfair Hobby Loss Rule.
Three ways our fact-filled article can help you:
- You’ll learn how Gullion won his tough battle. To rebut the IRS’s charge that his business was really a hobby, Gullion presented some extremely convincing evidence. You’ll learn exactly what it was when you read the full article.
- We’ll explain why the court ruled in the plaintiff’s favor. The court considered six regulations that helped Gullion win his case. We’ll list all the relevant regulations and explain the court’s decisions when you read the full article.
- We’ll tell you four ways to stay out of trouble. Solid documentation of the “business” aspect of your activity is vitally important. We’ll list four ways for you to provide IRS-acceptable documentation when you read the full article.