IRS likes YOU

ODJ · #1 (**permalink**) Mon Jun 23, 2008, 11:41pm

AP (via Yahoo News) reports the IRS is raising the mileage credit to 58.5 cents for the second half of '08 because of high gas prices.
I didn't know it was raised to 50 cents for this year. I do know Schedule C is awesome.

Emperor Ump · #2 (**permalink**) Tue Jun 24, 2008, 08:57am

Check with your tax professional. My CPA has me claim my baseball income as "hobby income" with a much lower tax rate than self employment. But when claiming "hobby income" you cannot take deductions. In my situation it works out better. YMMV

ozzy6900 · #3 (**permalink**) Tue Jun 24, 2008, 10:49am

Quote:

Originally Posted by Emperor Ump

Check with your tax professional. My CPA has me claim my baseball income as "hobby income" with a much lower tax rate than self employment. But when claiming "hobby income" you cannot take deductions. In my situation it works out better. YMMV

Yeah, tell that Bozo, when they charge "hobby gas prices" I'll accept "hobby income"!

Publius · #4 (**permalink**) Tue Jun 24, 2008, 12:17pm

Quote:

Originally Posted by Emperor Ump

Check with your tax professional. My CPA has me claim my baseball income as "hobby income" with a much lower tax rate than self employment. But when claiming "hobby income" you cannot take deductions. In my situation it works out better. YMMV

YOU might not be able to take deductions from your hobby income based on your situation, but...

If the third sentence of your quote were a T/F question on a tax exam, the correct answer would be "F".