Show I Taxing Questions This column of questions and answers on federal tax matters is provided by the local office of the U.S. Revenue Service and is published as a public service to The column answers questions most frequently asked by 1 work as an auto but 1 plan to start a part-time business building Hot rods from Model Although expect to make a profit from this business there will be losses in the beginning due to the large investments I'll make in equipment and Can 1 deduct these losses even though my business won't show much A. you An activity is considered a business if it is entered into and carried on in good faith for the purpose of making a Two characteristic elements of a business and regularity of activities and transactions and the production of In an given if no income or a small amount of income is coupled with expenditures that produce a there may be a question whether a business was carried on in that absence of income in itself does not prevent you from deducting the ordinary and necessary expenses connected with your I just finished doing jury duty on a two-month long Will 1 have to pay tax on the fee I received for serving on the A. jury duty fees represent earned income and they are My great uncle died recently and left me some trust income in the form of some How do I report this on my tax A. Each item of income re the same character in your hands as it had in the hands of the if items of income distributed to you for dividends of domestic tax-exempt interest or capital they will retain the same character in your hands for the purposes of tax You should report your dividends on line of Form U.S. Individual Income Tax I rent a large safe deposit box for keeping some small pieces of art and important Is the rent on the box tax A. Safe deposit box rent is deductible if the box is used for the storage of income-producing and ed papers and The rent is not deductible if the box is used for personal effects or tax-exempt |