What is a Fiduciary?

what-is-fiduciaryA person who is responsible for the administration of property owned by others. Corporate management is a FIDUCIARY with respect to corporate ASSETS which are beneficially owned by the stockholders and CREDITORS. Similarly, a TRUSTEE is the fiduciary of a TRUST and partners owe fiduciary responsibility to each other and to their creditors.

Hobby Versus Business

download (7)[1]Nine factors are looked at in distinguishing between a hobby and a business activity. They are:
1. How you execute the activity
2. Your level of expertise
3. How much time and effort you put into the activity
4. The amount of occasional profits, if any
5. Whether or not you think the assets used in the activity will increase in value
6. Your financial status
7. Prior success in similar ventures or activities
8. Income or loss history associated with an activity
9. Elements of recreation involved in the activity

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