Walt Eddy's Blog, page 7

Office in the Home

Most writers I know plan to do their writing, at least most of it, at home. So I guess if you consider your writing activity a business, the temptation is to deduct every household expense you can conceive of as a business expense. After all, you work at home.

But you need to be careful and be aware of the rules. Remember, tax law distinguishes between what is personal and what is business. Generally, rent, mortgage payments, repairs on a residence and the like are not deductible. They are...

Surprises

My oldest son brought a gal home tonight for us to meet, a friend he met way back in grade school and hasn't seen for years. The young lady now lives in Boston where she works in real estate as a broker. She says times are rough in real estate right now, not a surprise to me, but fortunately she said her office handles a lot of rentals that apparently keeps her in the black.

My boy had told her about my tax book for writers and artisans. (He might be impressed." He wanted me to show her a...

Gabriel the Comedian

In February, the United States Tax Court issued an opinion in the case of Gabriel J. Loup. Agents or auditors of the Internal Revenue Service had determined that Mr. Loup owed more taxes for his 2003 federal income tax return than he had reported or paid. The dispute revolved around his entitlement to claimed business expense deductions. IRS said he couldn't deduct expenses he had wanted to. Gabriel represented himself before the court; he didn't hire an attorney to represent him.

You have to...

April 15, 2008 is this week

Wednesday is the due date for filing individual income tax returns. It is a day to account for income earned in 2008. The law actually gives taxpayers a grace period from January 1 to April 15 to settle up for 2008.

Lots of taxpayers don't recognize that the income tax system taxes them throughout the period of their efforts and pay. A person owes tax throughout the particular year they work; it is a pay as you go system. Therefore, taxpayers who work as employees are required to have income...

WRITE NOW

An old joke goes that the Postal Service recalled a new stamp because they pictured Internal Revenue Service agents on them. The problem was people couldn't figure out what side they should spit on

We've come a long way. We don't spit on stamps anymore.

How about revenue agents? Would we just as soon spit on them? One theory I have about the current economic meltdown has to do with the inadequacy of our Congress to fund the enforcement of the laws that it has enacted, including the Internal...