am not a tax lawyer and I was just unable to find any mention of it in the
schedule C instructions -- I am pretty sure it was either $400 or $500.
Probably $400 since that is the cutoff for paying Social Security taxes.
brob writes:
> Well how much profit do u have to make in order to live by the rule.
> ----- Original Message -----
> From: Dana Tierney
> To: CF-Community
> Sent: Friday, October 17, 2003 8:31 AM
> Subject: Re: Texas corporation question
>
>
> IRS has somethign called a hobby rule... you cant deduct stuff for a
> business that lost money two out of the last three years, or something like
> that. I am actually not seeing this in the instructions, but I remember it
> from past years
>
> Dana
>
> Kevin Graeme writes:
>
> > To a limited extent, yes. But there are rules for how much you can deduct
> > for various things. When you go over those limits you generally have to
> > prove that you really needed to buy 25 computers, three cars, and a house
> > not for resale for the operation of a sole-proprietership (that's a
> > completely made up example.) Also, in some states a business must be
> > profitable over time or lose the business license and face IRS scrutiny.
> >
> > -Kevin
> >
> > ----- Original Message -----
> > From: "brob" <[EMAIL PROTECTED]>
> > To: "CF-Community" <[EMAIL PROTECTED]>
> > Sent: Friday, October 17, 2003 4:56 AM
> > Subject: Re: Texas corporation question
> >
> >
> > > Hey i was wonderin if u own a business and you use company money to buy
> > food or like a laptop, you can write those off as expenses right? And would
> > it be possible to do it so much that the company dont make any profit.
> > Therefore nothing to be taxed on, since they only tax profits right? err
> > yeah you know what i mean hehe
> >
> >
>
>
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