GET CONNECTED TAXES
Savvy strategies to help reduce your taxes


IRS Phone Forums

Small businesses can get helpful tax information from monthly phone forums (conference calls) sponsored by the IRS. The phone forums are free and convenient – you can call in from the comfort of your home or office. The monthly phone forums discuss topics of interest to businesses. Some of the previous issues covered included powers-of-attorney, energy credits, electronic IRS for businesses and Form 1099. Registration for the phone forums is easy and early registration is encouraged. There is no registration or participation fee. For more information, go to Small Business Tax Workshops and Phone Forums.

Business Or Hobby?

If your favorite hobby makes a profit every year or so, there may be tax implications that surprise you. Hobbies are activities that aren’t pursued for profit. But if you conduct your hobby with the expectation that you’ll earn a profit, then you’re running a business. An activity is usually considered a business if it makes a profit during at least three of the last five tax years, including the current year. Generally, you’re operating a business if:

• You run the activity in a businesslike manner
• The time and effort you put into the activity indicates an intention to make a profit
• You depend on income from the activity
• You made a profit in similar activities in the past

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