Archived posting to the Leica Users Group, 2009/07/13
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]I thought some of you might like to know the IRS has a renewed initiative to audit "hobby losses", cases where the IRS thinks a business lacks a profit motive. While this could arguably now encompass banks and car manufacturers, the thrust is on smaller operations. Here is a fairly good summary: http://www.forbes.com/2009/07/10/irs-taxes-hobbies-personal-finance-hobby.ht ml I mention it since I see photography is one of the activities specifically mentioned. The article has some planning ideas, but not all the factors courts have considered. Having your photography business categorized as a "hobby" can be particularly bad, since in many cases the gross income is taxable, but the deductions are not allowed, because of the alternative minimum tax. Anyway, you pros who are not breaking even might want to give it a look and talk with your tax advisor. Ken (whose only print sales are those donated to charity auctions where there is too much whiskey served)