The IRS often questions whether a particular hobby constitutes a business or if it’s just a hobby. Under the “hobby loss rule,” you can’t deduct expenses in excess of income, so no loss is allowed. In the latest example, a collector of sports memorabilia claimed losses for his activity, only to strike out in the Tax Court.
Q. We are paying our housekeeper to watch our children. Do we have to pay an extra nanny tax?
Every three years, the federal Office of Child Support Enforcement revises the standard Income Withholding Order. All child support withholding orders must be issued on IWOs. The OCSE recently updated the form and instructions.
The IRS has announced the following inflation-based adjustments for qualified retirement plans in 2015.
Q. Are there any tax breaks for installing solar panels on a personal residence?
The Treasury Inspector General for Tax Administration has released a new report on 2014 tax filing.
The tax rules for substantiating business travel expenses are a major hassle, but there’s a way to avoid some of the headaches. Rely on this record-keeping shortcut for lodging and meals and incidental expenses.
It’s still unclear whether the tuition deduction, which expired after 2013, will be reinstated for 2014. But that doesn’t mean that parents can’t claim any tax benefits for children in college.
Do you have a 401(k) or other defined contribution retirement plan at your company? Consider an approach from the days of yore.
As the end of the year fast approaches, you might make additional gifts to charity, including donations of stock or other assets. These extra donations can reduce your 2014 tax liability.