July 7, 2021

2021 – 07/02

Do you have a hobby that’s a source of income? If so, that income must be reported on your tax return. The extent to which you can deduct expenses related to the activity depends on whether the IRS considers it a business or a hobby. You can generally deduct expenses if you operate as a business with the intent to make a profit. The IRS looks at 9 factors to determine if an activity is a business rather than just a hobby, such as: Did you operate in a businesslike manner and keep accurate, complete records? Did you give sufficient time and effort to the activity to make it profitable? Did you change operations to improve profitability? For a complete list of factors: https://bit.ly/3AmC5B6