You would think that you could find a straightforward tax answer to deducting or not deducting the handgun you carry for business protection. Not true. There is just one case and it is likely not right on point, but it does give you something to consider.

Hallelujah, gamblers in the business of gambling may now deduct business expenses in excess of gambling losses. The Tax Court, in a new, precedent-setting case, establishes new rules for gamblers in the business of gambling.

The hobby classification on a tax return is death to deductions. You have a number of choices, but the two most prominent are (1) quit the hobby, or (2) make the hobby a business.

The IRS often visits a business that loses money year after year when the owner has another substantial source of income. But that combination of facts—income and losses—does not automatically make the loss activity a nondeductible hobby. There are nine factors that need consideration, and one of those factors carries huge weight.

Lawmakers hate taxpayers’ hobbies. They apply the most draconian of all taxes to hobbies. If you have a hobby or are thinking of a hobby, read this article before you take step one.

To deduct a loss on a charter fishing activity, you must materially participate in the activity. When the activity is organized as an LLC, you have more choices for material participation than a limited partner.

Being in business for yourself produces huge tax-deduction advantages for golfers and golf spectators. Golf advantages are more than double those of football, baseball, and basketball.

The proper tax deduction treatment for decorating a business office with a baseball card and memorabilia collection comes from the courts in their decisions on depreciating antiques.

Golf before or after convention meetings has been preapproved by the IRS as deductible associated entertainment that follows or precedes a bona fide and substantial business discussion. Golf before or after an office meeting has no such preapproval. It must pass the “associated entertainment” test to qualify for a deduction.

You need a solid plan when you want to combine deductible education with deductible hunting.

One taxpayer fixed up a house to sell it for a net loss. To save money on taxes, he can file as a real estate dealer, and not as an investor. Precedents and technical definitions help his case.

Tracy Topping saved $251,462 in taxes when she proved that her horse activity was not a hobby, but a promotional tool for her business.

If you have a business that goes under, and want to deduct it, you will need to prove to the IRS that it indeed was a business, and not a hobby. Assets, rental space, time spent, and other details will support your position.

You do not want a hobby for tax purposes. The fact that hobby losses are not deductible is minor compared to the other problems caused by the hobby. For example, you report hobby income above-the-line and hobby expenses below-the-line as miscellaneous itemized deductions where they suffer the 2 percent of adjusted gross income floor, or, worse yet, the AMT.

Hobby gambling can trigger taxes when you have a zero income because the law makes your winnings reportable above-the-line and losses deductible below-the-line.

Tax law places your collectible activity in one of four tax categories: (1) hobby, (2) investment, (3) trader, or (4) dealer. This means your collectible activity can, depending on category, trigger the AMT, capital gains, and self-employment tax. When you know the rules that place you in these categories, you can make adjustments. Sometimes the adjustments are easy; at other times, they require rethinking the collectibles activity.

When you start a new business activity or you do a business activity on the side, you must establish a profit motive. One easy way to demonstrate the profit motive is to show the time you spend on the activity. This taxpayer had no proof of time worked, so he looked suspicious to the court.