Sunday, July 12, 2009

IRS Taking a Closer Look At Stamp Collectors reports, "A new audit manual issued by the Internal Revenue Service to its agents concerns "hobby losses"--efforts by taxpayers to improperly write off costs of their stamp collecting, fishing excursions and other side activities. The good news for taxpayers is that the manual also provides guidance on how to use the rules to their advantage."

Here's their suggestions on how to avoid being unfairly taxed and/or audited if you declare losses from your philatelic activities...

  • Bunch up expenses

  • Write a business plan

  • Operate like a business

  • Display personal expertise

  • Put in the hours

  • Make it one big ball of wax

  • Have an Internet presence

  • Let your tax adviser do the talking

  • Act in good faith
For details, click here.

A related story by William P. Barrett also appears on the site.
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posted by Don Schilling at 12:01 AM