Bauknight Pietras & Stormer, P.A.’s Post

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.

Many people dream of turning a hobby into a business. You probably won’t have any tax problems if your new business is profitable over a certain period of time. But what if the venture consistently generates losses (deductions exceed income) and you claim them on your tax return? In an audit, the IRS may say it’s a hobby (an activity not engaged in for profit) rather than a business. Then you can’t deduct losses. There are 2 ways to avoid the hobby loss rules: 1) Show a profit in at least 3 out of 5 consecutive years (2 out of 7 years for certain horse businesses). 2) Run the venture in a way that shows you intend to turn it into a profit maker rather than a hobby. Contact us to learn more.