Special Alert: The Colorado Secure Saving Program: What You Need to Know
Will Small Business Retirement Plan Rules Affect Your Firm?
START TODAY! Your Path to Starting Your Own Business.
There has never been a greater time in history to start and own a small business. Advancements in technology have made it easier and easier for entrepreneurs to get started with very little startup cost.
Is Your Sideline Activity a Business or a Hobby?
Do you have a sideline activity that you think of as a business?
From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions?
The IRS likes to claim that money-losing sideline activities are hobbies rather than businesses. The federal income tax rules for hobbies have been anti-taxpayer for years, and now an unfavorable change enacted in the Tax Cuts and Jobs Act (TCJA) made things even worse for 2018-2025.
If you have such an activity, we should have your attention.
Here’s the deal: if you can show a profit motive for your now-money-losing sideline activity, you can classify that activity as a business for tax purposes and deduct the losses.
In this article, we give you what you need to know about the federal income tax rules for hobbies and how to tilt the playing field in your favor.
The Power of Gratitude
You started your business with a plan that you believed would succeed and become prosperous. Showing gratitude towards customers is a great way to ensure that success, but often it’s one of the easiest things to allow to fall through the cracks. It can be one of the biggest things to set you apart from your competition – both positively and negatively. It’s an often simple and economic way to secure key professional relationships that can become more powerful than you might have imagined.