At 08:36 AM 12/10/2012, chan.fusion.po...@gmail.com wrote:
FYI:
http://papp.scienceontheweb.net/Forming.html
www.free-energy-info.co.uk/P2.pdf
BTW Trying to pass off LENR as a business when you admit it is your
hobby to avoid paying taxes to the IRS is a ploy used by the
dishonest born or lucky Rich and that is illegal, JR. Vortex is read
by citizens ready to earn IRS rewards. Just pay your taxes!
Chan
This is ridiculous. I have no specific opinion about the sites
linked, but they don't "admit" that LENR is a hobby.
Sometimes something is both a hobby and an attempt to discover
something that could make a profit. IRS rules cover this, and require
that the business be conducted toward earning a profit, or the
deductions might be disallowed. Generally it is required that a
business make a profit so many years out of so many.
Someone reporting someone else for allegedly only being engaged in a
hobby would probably not earn a reward, and incorrectly claiming a
hobby as a business isn't exactly "illegal," unless it is flagrant,
and that could be very difficult to prove.
Yeah, I have a business testing massage services. My expenses include
getting a massage every day, and I carefully record my satisfaction
and intend to write a report and earn big bucks. Illegal? Probably
not. Could I get away with it? Maybe, more likely not. But if I could
show that my behavior was consistent with a profit-making intention,
this would actually be a business, no matter how much personal
pleasure I derive from it.
If the IRS could show that I really knew this was a bogus scheme,
yes, it might even be criminal. But if I actually intended to make a
profit, even foolishly, and I could present evidence for that, quite
likely the IRS would not prosecute, and might fail if they tried. It
can be hard to prove intention.
This site,
http://www.bankrate.com/finance/money-guides/turning-hobby-into-business-means-tax-breaks.aspx
actually covers how to convert a hobby to a business. The central
matter is conducing the "business" like a business, the goal of the
IRS interpretation is to determine if the activity is conducted with
a goal of profit (even if it doesn't actually make a profit); if so,
it's a business and income is taxable, and expenses are fully
deductible from other income. If it's a hobby, expenses are only
deductible up to the amount of income, you cannot deduct "hobby"
losses from other income.
