Do You Have a Deductible Business Loss or a Nondeductible Hobby Loss?

Posted by BKHM CPAs on Tue, Aug 15, 2017 @ 01:04 PM
Taxpayers who engage in an unincorporated sideline — outside of their regular day jobs — must understand the differences in the tax treatment of hobbies and for-profit business activities. Here's an overview of the hobby loss rules, along with a recent U.S. Tax Court case that disallowed a taxpayer's claim that his loss from organizing film festivals should be classified as a for-profit business activity. Click Here to continue reading.
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Topics: Business Loss