Your hobby business could land you in Tax Court – avoid IRS pitfalls by how you structure your small business.
Many people successfully develop a hobby into a going concern and actually receive income from it. That income must always be reported and taxes paid on that money regardless of your situation. If you leave that hobby as a hobby, under the tax law, you are not allowed to deduct any of the losses incurred by activity in that hobby. That is the reason most people turn their hobbies into businesses once they start making money.
When Are Hobby Losses Deductible?
By showing that your pursuit of your “hobby” is an activity engaged in for profit, you may be Read More
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