Related Topics

gravityform id=”32″ title=”true” description=”true”

gravityform id=”38″ title=”true” description=”true”

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, religious creed, disability, age, political beliefs, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.

To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992.

Submit your completed form or letter to USDA by one of the methods listed below:

  1. Mail: U.S. Department of Agriculture
    Office of the Assistant Secretary for Civil Rights
    1400 Independence Avenue
    SW Washington, D.C. 20250-9410
  2. Fax: (202) 690-7442
  3. Email: program.intake@usda.gov.

 

This institution is an equal opportunity provider.
This material was funded by USDA’s Supplemental Nutrition Assistance Program – SNAP.

USDA Logo

* This is an excerpt from Business or Hobby? Active or Passive?

The deduction of expenses from an activity that is not engaged in for profit generally is limited to the amount of gross income derived from that activity. In other words, a loss from an activity that a taxpayer does not engage in for profit cannot be used to offset the other income of the taxpayer. In such a case, the taxpayer must take deductions attributable to the activity in the following order and only to the extent stated in the following three categories:

Category 1 Deductions

Deductions the taxpayer can take for personal as well as for business activities are allowed in full. For individuals, all nonbusiness deductions, such as those for home mortgage interest, taxes, and casualty losses, fall into this category.

Category 2 Deductions

Deductions that do not result in an adjustment to the basis of property are allowed next, but only to the extent the taxpayer’s gross income from the activity is more than the de­ductions under the first category. Most business deductions, such as those for advertising, insurance premiums, interest, utilities, and wages, fall into this category.

Category 3 Deductions

Business deductions that decrease the basis of property are allowed last, but only to the extent the gross income from the activity exceeds the taxpayer’s deductions under the first two categories. Deductions for depreciation, amortization, and the part of a casualty loss an individual could not deduct in Category 1 belong in this category (Code Sec. 183(b); Reg. Sec. 1.183-1(b)).

 

For individual taxpayers, these deductions may be taken only if deductions are itemized. Individuals take the Category 1 deductions on the appropriate lines of Schedule A (Form 1040). Individuals take the Category 2 and 3 deductions as miscellane­ous deductions on Schedule A (Form 1040).

 

Read here to learn more about Business or Hobby? Active or Passive?.

 

*This is for information purposes only and is not a substitute for legal advice or recommendations.

Did you find this helpful?