THE SUNLIGHT TAX BLOG:

Tax and Money Education for Creative People, Freelancers and Solopreneurs

Sunlight Podcast Hannah Cole Sunlight Podcast Hannah Cole

Business vs. Hobby & the IRS 9 Point Test for Profit Motive

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Business vs. Hobby & the IRS 9 Point Test for Profit Motive

Today, I’m talking about the tax laws related to distinguishing between a hobby and a legitimate business when you’re a creative professional. I’m also explaining the IRS's view of profit motive as the key factor and discussing how you can determine whether you have a business or hobby.


Join me in this episode to get some advice and tips on how you can prove profit motive and avoid being wrongly classified as a hobby by the IRS.

LISTEN AND SUBSCRIBE HERE

Today, I’m talking about the tax laws related to distinguishing between a hobby and a legitimate business when you’re a creative professional. I’m also explaining the IRS's view of profit motive as the key factor and discussing how you can determine whether you have a business or hobby.


Join me in this episode to get some advice and tips on how you can prove profit motive and avoid being wrongly classified as a hobby by the IRS.

Also mentioned in today’s episode: 

  • Why profit motive is so important 5:35

  • The IRS’s nine-factor test for determining if a creative hobby is a business 19:35

  • The hobby loss rule and how it’s applied 33:07

If you enjoyed this episode, please rate, review and share it! 

Links:

IRS audit technique guide: https://www.irs.gov/pub/irs-pdf/p5558.pdf

https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes

The Sunlight Podcast Episode 67: Your Business Already Started

An Audit Nightmare Turned Artist Victory: An Interview with Susan Crile

Learn more about Money Bootcamp

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Sunlight Podcast Hannah Cole Sunlight Podcast Hannah Cole

New Rules for LLCs: Update

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New Rules for LLCs: Update

In today’s episode, I’m revisiting an important topic and giving you an update about the Corporate Transparency Act, which aims to identify owners of LLCs and prevent financial crimes.  

I’m providing an update on information about the requirements of filing a Beneficial Ownership Information report, including the deadlines and penalties and how you can file.  

Join me in this episode to get all the timely information about this act and learn how you can get step-by-step video directions on filing for your LLC! 

LISTEN AND SUBSCRIBE HERE

In today’s episode, I’m revisiting an important topic and giving you an update about the Corporate Transparency Act, which aims to identify owners of LLCs and prevent financial crimes. 

 

I’m providing an update on information about the requirements of filing a Beneficial Ownership Information report, including the deadlines and penalties and how you can file. 

 

Join me in this episode to get all the timely information about this act and learn how you can get step-by-step video directions on filing for your LLC! 

 

Also mentioned in today’s episode: 

  • Why you should be aware of scams when it comes to filing 6:00

  • Why the Corporate Transparency Act was passed and why it’s important 9:05

  • The deadlines for filing and the penalties 14:48

If you enjoyed this episode, please rate, review and share it! 

Links:

 Free 20 Minute Course on Filing your BOI Report for LLCs: www.sunlighttax.com/llc

IRS Proof Your Business Deductions

Watch Youtube Video Version

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Why It Matters Who You Listen To

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Why It Matters Who You Listen To

Today, I want to talk about why it’s so important who you take advice from when you’re an entrepreneur. I share some of my experiences and some of the advice I was given that didn’t account for my unique responsibilities and constraints as a new entrepreneur and mother. 

Listen to this episode to get some guidance on how you can make decisions based on your own values and needs and not someone else’s.  

LISTEN AND SUBSCRIBE HERE

Today, I want to talk about why it’s so important who you take advice from when you’re an entrepreneur. I share some of my experiences and some of the advice I was given that didn’t account for my unique responsibilities and constraints as a new entrepreneur and mother. 

 

Listen to this episode to get some guidance on how you can make decisions based on your own values and needs and not someone else’s.  

 

Also mentioned in today’s episode: 

 

  • My experience of just starting out in business while still taking care of children 3:35

  • Why it’s important to understand people's needs and safety concerns when giving business advice 7:40

  • Blind spots in gender dynamics when it comes to giving advice 13:00

If you enjoyed this episode, please rate, review and share it! 

Links:

IRS Proof Your Business Deductions

Watch Youtube video version

Read More

4 Cases Where Done Beats Perfect

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4 Cases Where Done Beats Perfect

In today’s episode, I’m sharing my story of struggling with perfectionism and how I was able to overcome that and embrace imperfection and how I came to aim for quality over perfection.

Join me as I share some of my story along with some tips on how you can embrace and live the motto “Done is better than perfect” when you’re just starting out as a business new owner. 

LISTEN AND SUBSCRIBE HERE

In today’s episode, I’m sharing my story of struggling with perfectionism and how I was able to overcome that and embrace imperfection and how I came to aim for quality over perfection.

 

Join me as I share some of my story along with some tips on how you can embrace and live the motto “Done is better than perfect” when you’re just starting out as a business new owner. 

 

Also mentioned in today’s episode: 

 

  • The four areas where imperfection is acceptable and even beneficial 3:33

  • The importance of education and self-management when it comes to investing 5:35

  • The importance of quarterly taxes and why you shouldn’t stress if it’s not perfect 10:41

If you enjoyed this episode, please rate, review and share it! 

Links:

IRS Proof Your Business Deductions

Watch Youtube video version

Read More

How Taxes Can Unlock Your Financial Health

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How Taxes Can Unlock Your Financial Health

Today, I’m giving some guidance on how you can use tax time as an opportunity to improve your finances and set yourself up for retirement. I’m diving into the importance of getting organized with systems to track tax documents, receipts, and bookkeeping so you can prevent stress and surprises during tax season. 

Join me in this episode as I outline the steps you need to take to improve your financial security as a creative entrepreneur.

LISTEN AND SUBSCRIBE HERE

Today, I’m giving some guidance on how you can use tax time as an opportunity to improve your finances and set yourself up for retirement. I’m diving into the importance of getting organized with systems to track tax documents, receipts, and bookkeeping so you can prevent stress and surprises during tax season. 

 

Join me in this episode as I outline the steps you need to take to improve your financial security as a creative entrepreneur.

 

Also mentioned in today’s episode:  

  • Why tax time is a key time to assess your financial situation 2:42

  • Why being organized with your finances is so important 7:24

  • High-level steps you can take to prevent stress and surprises at tax time 12:35

  • How you can easily calculate profit as a self-employed person 14:40


If you enjoyed this episode, please rate, review and share it! 

Links:

The De-Stress Your Taxes Checklist Episode 

Sign up for the free class: Make Taxes Easier and Stash an Extra $130k in your Savings.

Watch Youtube video version

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