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#1 |
VIP Member
Join Date: Oct 2007
Posts: 1,168
Likes: 487
Liked 346 Times in 126 Posts
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Get a hold Of Julie J, she knows everything about this
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#2 |
Senior Member
Join Date: Dec 2001
Location: Modesto, CA
Posts: 639
Likes: 90
Liked 546 Times in 94 Posts
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You don't owe SE tax on this. I'll be at my office all day, call if you want. 209-544-8150
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Julie Jordan 7549 STK |
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#3 |
Junior Member
Join Date: Jan 2010
Posts: 14
Likes: 0
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John if it will help I can send Dale down to teach Jon how to drive the stripe. That should take care of pesky winnings.
Jay H. |
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#4 |
Junior Member
Join Date: Mar 2010
Posts: 21
Likes: 0
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The way you have prepared the return the IRS is correct. You should file an amended return reporting the earnings on Schedule C and taking expenses up to the extent of the income. You are making the election that this is a hobby which limits the expenses to the extent of your earnings.
D. Marshall, III CPA |
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#5 |
VIP Member
Join Date: Dec 2006
Posts: 1,220
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just say it was a wash won 10 spent 10
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#6 | |
Senior Member
Join Date: Dec 2001
Location: Modesto, CA
Posts: 639
Likes: 90
Liked 546 Times in 94 Posts
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Julie Jordan 7549 STK |
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#7 |
Senior Member
Join Date: Feb 2002
Location: Southeast Michigan
Posts: 909
Likes: 70
Liked 239 Times in 114 Posts
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Thanks Julie, for where the income goes, but how do you offset the winnings with your expenses. Thanks
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#8 | |
Senior Member
Join Date: Dec 2001
Location: Modesto, CA
Posts: 639
Likes: 90
Liked 546 Times in 94 Posts
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If you are treating it as a hobby, the income goes on line 21, Form 1040. The expenses are deducted on Schedule A as a miscellaneous deduction. The expenses are limited to the activity's gross income. In addition, the expenses are subject to the 2%-of-AGI limitation. A taxpayer engaged in a not-for-profit activity (hobby) is not subject to SE tax on income from that activity.
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Julie Jordan 7549 STK |
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