You may dream of turning a hobby into a business. You won’t have any tax headaches if your new business is profitable. But what if the enterprise consistently generates losses (deductions exceed income) and you claim them on your tax return? The IRS may step in and say it’s a hobby (an activity not engaged […]
Tag Archives | Rental Property Tax Implications
Thinking about converting your home into a rental property?
Some taxpayers move to new homes but rent out their present homes. Renting out a home carries potential tax benefits and pitfalls. You’re generally treated as a landlord once you begin renting your home. That means you must report rental income on your tax return but are entitled to deductions for utilities, incidental repairs, depreciation […]
