For all mail correspondence, please use our Valparaiso office address:
Laciak Accountancy Group
56 S Washington Street 2nd Floor, Valparaiso, IN 46383
Tax Filing Documents
If you are dropping off outstanding tax documents at our office, we ask that you please call us ahead of time. We will be happy to wear a mask, simply ask!
Thank you for your cooperation and support!
Want To Turn A Hobby Into A Business? Watch Out For Tax Rules
Like many people, you may have dreamed of turning a hobby into a regular business. You won’t have any tax headaches if your new business is profitable. But what if the new enterprise consistently generates losses (your deductions exceed income) and you claim them on your tax return? You can generally deduct losses for expenses incurred in a bona fide business. However, the IRS may step in and say the venture is a hobby — an activity not engaged in for profit — rather than a business. Then you’ll be unable to deduct losses.
By contrast, if the new enterprise isn’t affected by the hobby loss rules because it’s profitable, all otherwise allowable expenses are deductible on Schedule C, even if they exceed income from the enterprise.
Note: Before 2018, deductible hobby expenses had to be claimed as miscellaneous itemized deductions subject to a 2%-of-AGI “floor.” However, because miscellaneous deductions aren’t allowed from 2018 through 2025, deductible hobby expenses are effectively wiped out from 2018 through 2025.
The IRS recently released guidance providing the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). High inflation rates will result in next year’s amounts being increased more than they have been in recent years.
BUSINESSES MAY RECEIVE IRS NOTICES ABOUT MISMATCHED INFO
The IRS has begun mailing notices to businesses, financial institutions and other payers that filed certain returns with information that doesn’t match the agency’s records.
