Determining if trade or business Flashcards
1
Q
trade or bus if:
A
continuously and regularly involved with the primary purpsoe being profit
2
Q
renting 1 house…
A
prob not bus (however can still deduct under 263 for rental expenses).
3
Q
renting 5 houses
A
prob bus.
4
Q
part time business
A
OK as long as purpose is profit
5
Q
hobbies difference?
A
trade/bus is for profit.
6
Q
Can deduct expenses for hobbies…
A
up to the point of profit (if 100 profit, can get 100 in deductions via 183
7
Q
factors of 183
A
primary factor is profit
if hobby- no profit over long time.
8
Q
congress excludes some bus expenses from deduction. for policy
A
162- bribes, traffic fines, illegal activity (weed dealers in colorado)
