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Financial Planning / Tax Strategies


Subject:  Re: Self employment tax Date:  6/23/2006  9:31 AM
Author:  edcosoft Number:  87531 of 127534

If she loses money baby sitting for more than three out of the past five years then the IRS considers it a hobby unless she is running it in a prudent businesslike manner.

I think it's "if she makes money in 2 of the past 5 years the IRS CAN'T claim it's a hobby", or something similar. If expensed correctly, Daycare almost always loses money because its home use deductions are so much broader than regular home office deductions.

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