Hobby vs. Business

This handout explains the deduction limitation for activities that are considered a hobby. The handout lists the factors that may determine whether an activity is a hobby or a business.

HIGHLIGHTS: 

  1. Determination of activities as a hobby or business.

  2. Presumption of profit.

  3. Reporting hobby income and expenses.

  4. Activities which are generally not engaged in for profit.


CLIENTS WHO MAY BENEFIT:

  1. Taxpayers who want to take a tax loss as a business.

  2. Taxpayers who wish to document activities as business activities.

Individual Income TaxClare FazackerleyTax, Hobby, Hobby Deduction, Hobby Income and Expenses, Profit, Business Loss, Crafts, Etsy