Tax writeoff or not ?

[bobm]

Yesterday's tax audit or a couple that has a trucking business and own a home on 0.9 A. On the tax return, they claim that for the last 3 years, they have purchased a green house, storage shed, every type of herbicide , pesticide, fertilizer, etc. (enough to open their own gardening store). They raise vegetables as well as a few fruit trees. They have been claiming that they need the above purchases as a business expense to offset husband's purchasing meals, etc. while on long hauls. They claim and take per diem expenses while he is driving, so that covers daily expenses. IRS ruling was that the gardening operation is a hobby since they have never sold a single item that they had produced on their garden/ property , never made a profit from this gardening venture , so none of their expenditures for gardening can be deducted off their tax return. They lost all $$$s that they claimed as business expenses in the past , plus penalties and interest that totals into the thousands. I hope that this helps someone .
















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[baymule]

Having had a business, I am sensitive to what is a write off and what isn't. I sell lamb, I sell pork, I sell chicken and eggs. Those I keep careful records on. We also have 4 horses. They are a hobby, not a tax write off. I have a big garden, no write offs there either.

People can be incredibly stupid and greedy liars.

I always enjoy your IRS posts. LOL

 

[bobm]

I post some results of audits that I hope will help someone of you to not receive a letter of greetings from Uncle Sam and hope that it would avoid digging into your golden nest egg that you work very hard to increase.