Archive for March 2nd, 2009|Daily archive page
No. 7 Failure to understand the Hobby Loss Rules
Comments (3)Many factors go into the determination of whether you have a business or a hobby. Did you know that there is NO rule that says if you have losses in 3 out of 5 years, your business will be treated as a hobby? IRS does say if you have income in 3 out of the last 5 years, your venture will be considered to be a business. There are many factors that the IRS considers in determining if you have a business or a hobby. Here is just one factor (there are others) Do you carry out your business in a business like manner? This means keeping good books and records, receipts, and the like. I would love to hear from you – is this a topic that worries you or your friends?
