Tax question

[sterlinggirl]

Originally Posted by jimhcom

Suppose someone works a 40hr/wk job, but also actively manages investments, and at some point the investments begin to produce more income than the job. Does that change the persons "occupation" for tax purposes? If so and they are managing the investments from home, does that legitimately give them the right to claim a portion of home expenses as tax deductions?

I'd think that if you were managing investments in your own name, your home office use would still be considered personal.

If you rolled some of those investments into a company, it would make sense to have a home office (and other allowable expenses) for the company.

[jimhcom]

Thanks for all the great info, sounds like they place the bar pretty high and it is probably not worth it for me at this time.