Old 01-07-2012, 07:52 AM
  #23  
cpcarolyn
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Join Date: Oct 2011
Location: Moscow Id
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The IRS is looking at these hobbys as businesses. You need to show a profit 2 out of every 5 years, They look to see if there is a profit motive and are you conducting this as a business. If not it is declared a hobby and you can only take expenses up to income. In other words no losses. I hope that your tax prepayer is not depriteciating your home because if she is you will lose the personal home exemption on that portion when you sell it. All these things should have been explained to you. The attidue at the IRS is not a plesent one at this time. You are looking at an aduit in you future and it will not be good.
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