Episode Details
Back to EpisodesBusiness or Hobby? IRS Factors to Consider
Published 7 years, 3 months ago
Description
Whether it’s the startup of your dreams, that side-gig to which you devote all your spare time, or your main moneymaker, if you’ve taken a big loss in your endeavor, while deducting your expenses as that of a business, there comes a time when the IRS will question whether you’re running a business or simply have a hobby.Businesses often lose money in the first few years of operation, but it’s expected that a legitimate endeavor will eventually begin to make a profit.Listen in to our show to learn the factors the IRS uses to determine if the activity is a business or hobby.
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