What, if anything, is wrong with this sentence?

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Subject Author Date What, if anything, is wrong with this sentence? Bill Brown 07-17-2009  Re: What, if anything, is wrong with this sentence... Stuart A. Bronstein 07-17-2009  Re: What, if anything, is wrong with this sentence... paultry 07-17-2009  Re: What, if anything, is wrong with this sentence... Mark Bole 07-17-2009  Re: What, if anything, is wrong with this sentence... Alan 07-17-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-17-2009  Re: What, if anything, is wrong with this sentence... Alan 07-17-2009  Re: What, if anything, is wrong with this sentence... DF2 07-18-2009  Re: What, if anything, is wrong with this sentence... Diogenes 07-18-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-18-2009  Re: What, if anything, is wrong with this sentence... Mark Bole 07-18-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-18-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-18-2009  Re: What, if anything, is wrong with this sentence... Mark Bole 07-18-2009  Re: What, if anything, is wrong with this sentence... Kurt Ullman 07-18-2009   Re: What, if anything, is wrong with this sentenc... Steve Pope 07-18-2009  Re: What, if anything, is wrong with this sentence... Mark Bole 07-18-2009  Re: What, if anything, is wrong with this sentence... D. Stussy 07-18-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-18-2009  Re: What, if anything, is wrong with this sentence... Alan 07-22-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 07-22-2009  Re: What, if anything, is wrong with this sentence... Wallace 07-18-2009  Re: What, if anything, is wrong with this sentence... Dick Adams 07-23-2009  Re: What, if anything, is wrong with this sentence... Seth 07-23-2009  Re: What, if anything, is wrong with this sentence... Alan 07-23-2009  Re: What, if anything, is wrong with this sentence... Dick Adams 08-05-2009  Re: What, if anything, is wrong with this sentence... Bill Brown 08-05-2009  Re: What, if anything, is wrong with this sentence... Mark Bole 08-06-2009
Posted by Bill Brown on July 17, 2009, 10:15 pm Please log in for more thread options > "The surest way to reduce your taxes is to convert personal > expenditures into allowable deductions. Turn even a hobby into a > business and you'll cut your tax bill." I appreciate all the responses but they are more general than what I am looking for. Specifically, is there anything wrong with the quoted sentence? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on July 17, 2009, 11:01 pm Please log in for more thread options Bill Brown wrote: >> "The surest way to reduce your taxes is to convert personal >> expenditures into allowable deductions. Turn even a hobby into a >> business and you'll cut your tax bill." > > I appreciate all the responses but they are more general than what I > am looking for. Specifically, is there anything wrong with the quoted > sentence? > As the opening of a much broader discussion.. the two sentences are fine. See the link below for the quote and the rest of the article: "The ultimate tax shelter: owning your own business". http://www.selfemployedweb.com/ultimate-tax-shelter.htm If the two sentences are meant to stand by themselves, then they make no sense to me. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by DF2 on July 18, 2009, 10:18 am Please log in for more thread options In misc.taxes.moderated, Bill Brown wrote: >> "The surest way to reduce your taxes is to convert personal >> expenditures into allowable deductions. Turn even a hobby into a >> business and you'll cut your tax bill." > >I appreciate all the responses but they are more general than what I >am looking for. Specifically, is there anything wrong with the quoted >sentence? The second sentence should have a comma after the word 'business'. The alt.usage.english group could maybe give a deeper analysis. :-) -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Diogenes on July 18, 2009, 10:18 am Please log in for more thread options > I appreciate all the responses but they are more general than what I > am looking for. Specifically, is there anything wrong with the quoted > sentence? ------------------------ >> Yes, it is wrong if you want to nit-pick the wording. Personal expenses are personal expenses and you cannot convert a personal expense into a business expense. You can only deduct it if it becomes a business expense. Then it would no longer be a personal expense. For example, if you move out of your home and rent it, the property taxes would no longer be personal expenses. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Bill Brown on July 18, 2009, 10:54 am Please log in for more thread options > > I appreciate all the responses but they are more general than what I > > am looking for. Specifically, is there anything wrong with the quoted > > sentence? > > ------------------------ >> > Yes,  it is wrong if you want to nit-pick the wording.  Personal expenses > are personal expenses and you cannot convert a personal expense into a > business expense.   You can only deduct it if it becomes a business expense. > Then it would no longer be a personal expense. Here is what I find wrong with the wording of the first two sentences (yes, they are intended to be taken together - my bad). Background: IRC Section 183 requires an intent to make a profit in order for a taxpayer to deduct expenses in excess of revenue of an activity. The sentences describe (very clearly, in my opinion) reducing personal taxes as the objective in creating an activity. In general, federal income taxes can be reduced only if taxable income is reduced. In general, taxable income can be reduced by a new activity only if expenses of the new activity exceed revenue of the new activity. Conclusion #1: If the new activity is created in order to reduce federal income tax liability, then the taxpayer does not have an intent to make a profit with the new activity. Conclusion #2: If the taxpayer does not intend to make a profit with the new activity, then only expenses equal to revenues can be deducted. Conclusion #3: If the activity is entered into with the intent to reduce federal income taxes, then the activity cannot be used to reduce federal income taxes. Now, is that nitpicking? Or is that an argument an IRS tax auditor might use if he/she knew that the taxpayer had used an article containing that sentence as justification for starting a new activity reported on Schedule C (or as a sub-S corporation)? Or both? Although I did use the article linked to by Alan, as the source, I have seen similar wording used by others over the years. Also, I read the article at another site dated about 5 months later than Alan's reference with no citation to the earlier appearance. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted I am confused by a sentence on the IRS website January 24, 2009, 6:16 pm Is my W2 box 2 info wrong? February 2, 2007, 7:56 pm Wrong address on W2 February 5, 2007, 9:00 pm Wrong address on W2 June 1, 2007, 10:42 am 2 1099-R's one is wrong February 8, 2009, 9:36 pm What to do when a 1099-R is wrong. 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