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View Full Version : Tax shelter... your thoughts?

FatNakedGuy
Feb-01-2006, 03:55 PM
Interesting read on turning your "hobby" into a "business". Your thoughts?

http://moneycentral.msn.com/content/Taxes/Taxshelters/P33572.asp
Shay Stephens
Feb-01-2006, 04:37 PM
I see it as gimmicks and games with the intent of tricking the system to pay less taxes.

What I would rather see is an article that talked about how to make profit from your business, instead of how to loose money to stick it to the man.

These types of shenanigans would be better explored in an "I hate the government" type forum :wink
mercphoto
Feb-01-2006, 05:48 PM
Interesting read on turning your "hobby" into a "business". Your thoughts?
My first thought is the press doesn't have anything new to write. There have been stories like this for a long, long time. Turn a hobby into a business to deduct the expenses. Employ your children to deduct their "wages" (i.e. turn allowance into a tax deduction). The list goes on.

Nothing to see here, move along. :D
cabbey
Feb-01-2006, 07:26 PM
And as my wife will attest, these types of gimics make for incredibly BORING court cases when the IRS gets annoyed enough to go after the folks that make a home business out of telling others how to do this same home business. (if I'm remembering the numbers correctly, her "how I spent my summer" would have been: over 60 days of jury duty, almost a 100 witnesses, 192 counts, 190 guilty, 2 not guilty.)
Bodley
Feb-02-2006, 05:33 AM
Interesting read on turning your "hobby" into a "business". Your thoughts?

http://moneycentral.msn.com/content/Taxes/Taxshelters/P33572.asp

This article seems dangerous. Starting and operating a business is not as simple as it seems - frankly it's a PITA. All the forms and fees for sales tax, property tax, business lic. etc... if your going to be legal. If your not going to be legal, not only are you cheating the government, your also cheating the photog that is legal. Also, if your not careful, your setting yourself up for an IRS inquisition as they are aware that many people do this as a scam to pay less tax.

Just remember when you cheat the government - who are you cheating? Maybe your kids, grandparents, disaster victims etc...

As for me - my goal is to make a profit. :clap