Investopedia

Continue to Site »

Personal-Service Activity

Filed Under » , ,
Dictionary Says

Definition of 'Personal-Service Activity'

Any business enterprise with the primary purpose of providing personal services. Personal-service activities encompass a wide range of professions, including law, medicine, engineering, design, finance, accounting and even performing arts. As the name implies, a personal-service activity focuses on directly providing a personalized service, such as legal advice or medical treatment, to an individual or group for compensation. Personal-service activities do not require the use of capital in order to generate material income.

Investopedia Says

Investopedia explains 'Personal-Service Activity'

The material participation test for personal-service activities determines whether or not a taxpayer is a material participant in a business. Taxpayers who meet test guidelines will most likely be able to deduct business losses.

Articles Of Interest

  1.

    Can You Handle A Home-Based Business?

    Find out if you have the traits to be a top entrepreneur.

  2. Should You Incorporate Your Business?

    Find out how becoming a corporation can protect and further your finances.

  3. Can You Deduct Your IRA Contributions?

    We help you answer this important question, which is determined by whether you are considered an "active participant".

  4. Investment Services Stump Investors

    What you're getting isn't easy to determine. Find out how to get your money's worth.

  5. What You Get When You Pay For Investment Services

    There are three value components in investing. Can you save money by doing some of them yourself?

  6. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".

  7. Financial Statement: Extraordinary Vs. Nonrecurring Items

    When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...

  8. Get A Career In Showbiz Accounting

    An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting.

  9. What Management Accountants Do

    If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you.

  10. Global Payments Still Feeling An Uncomfortable Squeeze

    Global Payments' struggles create an opportunity, but beware of the long-term changes to the industry.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center