Let’s imagine that Congress hired you to make the most unfair and unjust income tax known to a U.S. taxpayer. How much tax would you assess? How would it work? Think about that tax. Make it as unfair as you can imagine.
Now, let’s compare your most unfair tax with an income tax that actually exists in U.S. tax law.
Get Ready to Cry
For purposes of this example, let’s assume that you and your spouse report more than $175,000 of taxable income before considering the taxable income and deductible expenses of your hobby. Next, let’s say that your hobby has a gross income of $500,000 and expenses of ... Log in to view full article.