Subject: Digest for the period 5/3/2006 - 5/4/2006 Date: Thu, 04 May 2006 01:04:14 -0400 Table of contents ---------------------------------------------------------------------- 1. Re: Deducting Judge Expenses (Phil Sides Jr) 2. Re:POINTS FOR TRAVEL (Karl Hagglund) ---------------------------------------------------------------------- From: Phil Sides Jr Date: Wed, 03 May 2006 16:25:57 -0400 Subject: Re: Deducting Judge Expenses First a disclaimer: I am not an accountant and all I really know about taxes is I have to pay them, and when the IRS says you're wrong - it's the end of the discussion. That said though, take a look at this web page on the subject: http://www.wwwebtax.com/deductions_z_other/hobby_losses.htm This is the pertinent text: >Can I take a tax deduction for a hobby loss on my tax return? >The IRS defines a hobby as an activity that you pursue without >expecting to make a taxable profit - such as coin or stamp >collecting, as opposed to setting up your own dealership. > >The IRS assumes you're trying to make a taxable profit if you >actually made money in at least three tax years of the past five tax >years, including the current tax year. For horse breeding, racing, >training, or showing the test is taxable profits in two (2) tax >years of seven (7) consecutive tax years. However, regardless of >whether or not you meet the above taxable profit tests, the IRS may >still try to rebut the presumption and disallow your tax deductions >on your tax return. > >If, in the early tax years, the IRS tries to disallow your tax loss >on your tax return you may make a tax election on Form 5213 to >postpone the determination of whether the above tax tests apply. >You must make the tax election and file the form within three (3) >tax years of the due date of the first tax return for the activity. >The postponement is until the end of the fourth tax year (sixth tax >year for horses) following the first tax year of the activity. By >filing the form you agree to waive all statute of limitations issues >for that activity. You can file Form 5213 within sixty (60) days >after receiving a tax notice from the IRS disallowing your tax >deductions on your tax return so long as you are still within the >three (3) tax years described above. > >If you lose money pursuing a hobby, you cannot deduct your hobby >loss from your other income on your tax return, but you can deduct >your expenses up to the amount of your hobby income on your tax >return. A hobby loss is a miscellaneous tax deduction on your tax >return, though, and limited by the 2% of AGI threshold. > >A profitable sale of your hobby collection, such as stamps or coins, >is taxable as a capital gain on your tax return. A loss upon the >sale is not tax deductible on your tax return. So there apparently is some basis in the tax code for this, but the practice of our hobby in my opinion, appears to be a square peg and this deduction a round hole. Phil What a wonderful world it was once, when all the beer was not made in Milwaukee, Minneapolis or St. Louis. -Norman Maclean A River Runs Through It, 1976 ---------------------------------------------------------------------- From: Karl Hagglund Date: Wed, 3 May 2006 23:35:19 -0400 Subject: Re:POINTS FOR TRAVEL I think that Bill might be on to something with offering extra points to judges who travel to competitions. I am a new judge, and look at my current level as something that I will be with for the next decade. Not being in the boy scouts, I am satisfied, but without a certain amount of expense (point whoring as one of my comrades calls it [you know who you are, you slut... see you later this month drinking the low gravities for the BOS and long ride home]). I think that credit might be where its due here. I have a family, and frankly would not probably benefit from a travel rule, but think that judges who go more than 50 or 100 miles are probably due an extra half point or more. We should all admit that they should probably find a room if they're travelling some distance to drink a bunch of beer. People should give this serious consideration. Karl Hagglund ---------------------------------------------------------------------- ***** Important Subscriber Information ***** To post a message to JudgeNet, send it to judge`at`synchro.com. Send plain text only, no HTML, MIME, encoded text or attachments. Make sure you use a meaningful subject. Quote only as much material as is needed for context. To manage your subscription, go to http://synchro.com/judge/subscriptions.html or send an email to judge-request`at`synchro.com with the subject: help judge. JudgeNet is also available as an NNTP newsgroup, go to news://news.synchro.com/synchro.judge