It is not too late to review the Summer editions of the individual & small business newsletters.    To see them now click below.

Tax Tips Newsletter For individuals

Tax Tips Newsletter for Small Businesses

In the future click>Client tools>Tax tips newsletters

The IRS has developed Fact Sheet 2008-23 that helps explain when an activity is a hobby or a for profit business. Section 183 limits deductions that can be claimed when an activity is not engaged in for profit. Taxpayers may need a clearer understanding of what constitutes an activity engaged in for profit and the tax implications of incorrectly treating hobby activities as activities engaged in for profit. This educational fact sheet provides information for determining if an activity qualifies as an activity engaged in for profit and what limitations apply if the activity was not engaged in for profit.  See the attached fact sheet to determine if your hobby qualifies as a business or vice versa:

business-or-hobby.pdf

Please complete a separate form for each vehicle used for business:

vehicle-worksheet.pdf

Effective July 1, 2008, upon notification from the Massachusetts Department of Revenue, the Massachusetts Registry of Motor Vehicles may revoke or suspend a driver’s license, learner’s permit, right to operate a motor vehicle or certificate of motor vehicle registration for nonpayment of taxes. The statute also clarifies the licensee’s appeal rights. For more detailed information, including details about the applicable notice provisions, please see TIR 08-8: Sales/Use Tax, Withholding and Administrative Changes Contained in Chapter 182 of the Acts of 2008.