Discussion:Disagreement At Work? Hobby Income.
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| Revision as of 01:02, 21 October 2009 Kevinh5 (Talk | contribs) ← Previous diff |
Revision as of 01:02, 21 October 2009 TexCPA (Talk | contribs) (I agree / Kevin,) Next diff → |
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| {{ForumReplyPost|UserID=Kevinh5|Date=21 October 2009|Text=cogs of a hobby is properly deducted above the line, other expenses are deducted on Sch A as you write (limited to remaining gross hobby profit)}} | {{ForumReplyPost|UserID=Kevinh5|Date=21 October 2009|Text=cogs of a hobby is properly deducted above the line, other expenses are deducted on Sch A as you write (limited to remaining gross hobby profit)}} | ||
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| + | {{ForumReplyPost|UserID=TexCPA|Date=21 October 2009|Text=I agree / Kevin, beat me to the punch on the link | ||
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| + | [[http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A%2C_Sec._1.183-1 1.183-1]] | ||
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| + | [[User:TexCPA|TexCPA]] 20:02, 20 October 2009 (CDT)}} | ||
Revision as of 01:02, 21 October 2009
Discussion Forum Index --> Basic Tax Questions --> Disagreement At Work? Hobby Income.
Discussion Forum Index --> Tax Questions --> Disagreement At Work? Hobby Income.
| 21 October 2009 | |
| We're starting to go over things and get ready for the tax season. One of the topics that was discussed was Hobby Income. For example.. Sally goes out and buys 500 dollars worth of yarn from which she makes some sort of throw rug or whatever. Sally sells the rug for say 700 dollars. I maintain that Sally only has to report 200 dollars as Hobby Income on line 21. I was a minority of one. The situation assumes this is indeed a Hobby and not a Business.
I recall reading something about this somewhere at one time but have no idea where. The only thing I can think of, off hand right now, is that her cost of goods sold should not have to be included in figuring how much Sally has to report on her tax return. What do you think is the proper amount to report as income the 700 or 200 dollars. | |
| 21 October 2009 | |
| you are correct, Ddoshan. 200 on line 21.
of course, the yellow search box could always help someone find the correct answer Discussion:Hobby Income | |
| 21 October 2009 | |
| Maybe, but for the sake of discussion the problem assumed and presented this as Hobby Income. If it would make it easier, assume she also had 500 other dollars in miscellaneous expenses. Now she has a loss and she says and admits this is a hobby of hers. The miscellaneous expenses would have to be deducted on Sch. A which may or may not be of any use.
Question then is, does she report 700 or 200 on line 21. I believe it is 200 dollars. But no one at work agreed. | |
| 21 October 2009 | |
| cogs of a hobby is properly deducted above the line, other expenses are deducted on Sch A as you write (limited to remaining gross hobby profit) | |
