Also, for that ONE year, her taxes are more likely to be kosher. Even if its a hobby, but a hobby that makes money, you can write off the hobby's (legitimate, documented) expenses against the hobby's income. The problem arises from the schedule C loss in all the other years.
Profit in 1 year does not a business make. The IRS has a policy:
The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses. (Citation).
It generally sounds like the state auditor phrased things rather poorly, but someone who has been doing an activity and showing a loss for 9 years out of 10 is trying to write off their hobby on a schedule C, rather than a legitimate business.
Overall, a good general rule: Don't show a loss on your schedule C, especially on a repeated basis.
Or at least the lawyers: Steele, Duffy, and Paul Hansmeier. From their point of view, its far less painful for them to attend.
They tried their last minute "You have no jurisdiction" gambit, got bench-slapped for it hard, and Judge Wright in his writing has made it pretty clear that he wants those three in his courtroom, even if their lawyer won't accept service on their behalf.
Thus they can either fly coach and turn up today or fly Con-Air and turn up for the next hearing.
On the post: According To MN State Auditors, Success In The Music Biz Means Signing With A Major Label; Not Touring
Re: Re: Not the whole story
On the post: According To MN State Auditors, Success In The Music Biz Means Signing With A Major Label; Not Touring
Re: Re: Not the whole story
The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses. (Citation).
It generally sounds like the state auditor phrased things rather poorly, but someone who has been doing an activity and showing a loss for 9 years out of 10 is trying to write off their hobby on a schedule C, rather than a legitimate business.
Overall, a good general rule: Don't show a loss on your schedule C, especially on a repeated basis.
On the post: What Can Judge Wright Do To Team Prenda Tomorrow?
Actually, I'll bet that most show...
They tried their last minute "You have no jurisdiction" gambit, got bench-slapped for it hard, and Judge Wright in his writing has made it pretty clear that he wants those three in his courtroom, even if their lawyer won't accept service on their behalf.
Thus they can either fly coach and turn up today or fly Con-Air and turn up for the next hearing.
On the post: Verizon Steps In On Prenda Case; Says Brett Gibbs Never Informed Them Of Judge's Order Killing Subpoenas
Re: Implosion
On the post: Bizarre Legal Threat Of The Day: Confused Zoo Owner Threatens Popehat Over... Well... Just Read It
THe payday loan links...
On the post: Google Looks To Cut 'Funding' To 'Illegal' Sites It Doesn't Fund In The First Place
This is already done...
http://www.cs.gmu.edu/~mccoy/papers/CCS12Priceless.pdf
Google doesn't need to do this: the copyright holders need to do it. And they can. They just have to care enough to do so.
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