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Five Tax Tips about Hobbies that Earn Income

 

Millions of people enjoy hobbies. They can also be a source of income. Some of these types of hobbies include stamp or coin collecting, craft making and horse breeding. You must report any income you get from a hobby on your tax return. How you report the income is different than how you report income from a business. There are special rules and limits for deductions you can claim for a hobby. Here are five basic tax tips you should know if you get income from your hobby:

Homeowners Brace for Cash Crunch as HELOCs Come Due

During the height of the housing bubble, home equity lines of credit (HELOCs) were an extremely popular way for homeowners to tap into their home equity to fund a variety of purchases, such as home improvements and education expenses. In fact, $265 billion in outstanding HELOCs were originated between 2005 and 2008. (Source: Experian, May 2015) Unfortunately, many homeowners who took out HELOCs during this time period now find themselves bracing for a cash crunch as these loans enter their repayment phases.

What is a HELOC?

A HELOC is a revolving line of credit based on the amount of equity in your home. With a HELOC, you can borrow what you need (up to the maximum allowed) when you need it (subject to any time limit on the borrowing period--typically 10 years). With a HELOC, you can use the line of credit while making interest-only payments.

What is the "repayment phase"?

If You Get an IRS Notice, Here’s What to Do

 

Each year the IRS mails millions of notices and letters to taxpayers. If you receive a notice from the IRS, here is what you should do:

What is the Roth IRA five-year rule?

Actually, there are two five-year rules you need to know about. The first five-year rule determines when you can begin receiving tax-free qualified distributions from your Roth IRA. Withdrawals from your Roth IRA--including both your contributions and any investment earnings--are completely tax and penalty free if you satisfy a five-year holding period and one of the following also applies:

What is the Roth 401(k) five-year rule?

The Roth 401(k) five-year rule determines when you can begin receiving tax-free qualified distributions from your 401(k) plan Roth account. While it's similar to the five-year rule that applies to Roth IRAs, there are important differences.

Withdrawals from your Roth 401(k) plan account--including both your contributions and any investment earnings--are completely tax and penalty free if you satisfy a five-year holding period and one of the following also applies:

Prepaid Funeral Arrangements Can Have Grave Consequences

An important part of estate planning involves consideration of funeral or memorial arrangements, including paying for some or all of the costs in advance. Planning ahead not only spares your survivors from the stress of making these decisions, but prepaying for your services relieves your survivors from the burden of worrying about money during an otherwise difficult time.

Prepaid agreement

One way to prepay your funeral is by entering into a pre-need agreement with a funeral home of your choice. The funeral home may agree to "lock in" costs for future funeral or burial services at an agreed-upon price. This is often done through a trust or other arrangement that you can fund with cash, bonds, or life insurance. At your death, the funds are disbursed to pay for your funeral according to the terms of the agreement.

But before entering into a prepaid arrangement, you may want to get answers to the following questions:

Towne Auto Acquires North Collins Dealership; Adds GM Franchises to Portfolio

Towne Auto Acquires North Collins Dealership; Adds GM Franchises to Portfolio

Buffalo, NY – Towne Automotive Group expanded its Western New York presence by acquiring Steve Baldo Chevrolet Buick Cadillac in North Collins, NY. The deal makes General Motors franchises available to Towne customers for the first time, adding to its broad lineup of quality vehicles.

“We have many longtime salespeople with loyal customers who keep coming back to us when they’re searching for a new vehicle,” said Frank Downing Jr., Towne Automotive Group president. “Now, not only are we expanding our customer base, we’re also expanding the number of models we can offer them.”