On 9/24/2017 1:30 PM, Tony Cooper wrote:
On Sun, 24 Sep 2017 12:30:38 -0400, PeterN
wrote:

We could probably have saved a lot of time by accepting the proper term
being "exemptions" rather than "loopholes", since I recognize that the
way I used the latter was colloquial rather than technically correct. It
changes nothing with regard to the cost of equipment for hobbyists vs.
Pros, or in the way that they both reduce the effective tax rate in the
USA.


I would use the term "deductions," not exemptions. They are not the
same, and have specific meanings in the Code.


An "exemption" is something that need not be included. A "deduction"
is something that is included but is an offset in determining the tax
liability.

Deductions need not be claimed either. Personal exemption has a very
specific meaning. See IRC Sec 151. Organizations my be exempt from
specific sections of the tax code. most of the none personal exemptions
are mandatory, unless specifically stated otherwise in the Code.


A loophole *can* result in an exemption. If certain things are listed
as taxable income, something omitted from that list can be taken to be
exempted from taxation. The IRS may not agree.




Stick to your prior example of using a favorable section of the Code,
for an originally unintended purpose. If it makes you happy to use the
term to mean something else, i really don't care,

--
PeterN