Is Your Sideline Activity a Business or a Hobby?
Business, irs, small business, hobby, Financial Lisa Price Business, irs, small business, hobby, Financial Lisa Price

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.

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Long-Term Employment is Over: It is Time to Flex Your Entrepreneurial Muscles
Lisa Price Lisa Price

Long-Term Employment is Over: It is Time to Flex Your Entrepreneurial Muscles

The COVID pandemic created a whole generation of new entrepreneurs, and the gig economy was just starting to take off when the shutdowns began in March of 2020. Whether you’re ready to find your entrepreneurial side and exalt it or not, the world is changing. We are becoming entrepreneurs through the pressure of the world around us. There is no more long-term employment.

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