Of the 20.5 million, over 15 million direct sellers such as distributors for Amway, Herbalife, and Mary Kay fall into the tax code defined hobby area.
There’s likely millions of other unsuspecting taxpayers, too. Frankly, when your activity loses money, you could find yourself in tax code defined hobby hell.
Let’s face it…
Hobbies have been mistreated by the IRS for a very long time. But things just got a whole lot worse.
You see, thanks to lawmakers, the recent tax reform known as the Tax Cuts and Jobs Act now disallows all miscellaneous itemized deductions that are subject to the two-percent floor for tax-years 2018 through 2025.
What does this mean to you? How can you fight back?
You’ll find out when you read my new article titled Tax Tips: Tax Reform Puts Screws to Hobbies!
Three ways our fact-filled article can help you:
- We’ll explain (the unpleasant) tax code basics. Your taxable gross income includes income from whatever source unless there’s a specific exclusion. And there’s no exclusion for hobby income. This means you’re going to be taxed on the income. We’ll explain what expenses the IRS considers deductible when you read the full after-tax-reform article.
- You’ll learn why you’re unlikely to benefit from hobby-related expenses. The fact is, only personal-type expenses like interest and property taxes are deductible. And based on the new law, those expenses may or may not give you any benefit. This means you likely have no tax deductions. All will be explained when you read the full tax reform article.
- We’ll show you how to fight back. The last thing you want is a hobby that loses money but creates taxable income with no tax deductions to offset that income. The smart way to go? Put yourself in a position to call your money-losing activity a business. We’ll show you how when you read the full article.