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Hobbies for Tax Purposes
For tax purposes, a "hobby" is an activity you engage in primarily for a purpose other than to make a profit. The IRS commonly classifies inherently "fun" activities like creating art, photography, crafts, writing, antique or stamp collecting, or training and showing dogs or horses as hobbies.
Donations
Donations made to individuals are not tax-deductible. This includes GoFundMe, Kickstarter and other sites dedicated to individuals or small groups like a family that lost their home. Your charitable giving will qualify for a tax deduction only if it goes to a tax-exempt organization, as defined by section 501(c)(3) of the Internal Revenue Code. Before you donate, ask the charity how much of your contribution will be tax-deductible.
Setting up a Retirement Plan
Is your business interested in starting up a new retirement plan for your employees? Several different plans are available and/or a combination of plans to maximize deferral. A tax credit of $500 per year, for 3 years of the plan is available to offset the cost of setting up the plan. See IRS publication 3998 for more detailed information or give us a call.