Tax
Aug. 6, 2016
When can you tell the IRS a hobby is really a 'business'?
If you make money, it is always taxable no matter what, but the rules are different if you lose money. If it is a real business, the answer is yes. If it is just a hobby, the answer is no — well, at least if you ask the question this way. By Robert W. Wood of Wood LLP
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
If you make money, it is always taxable no matter what, but the rules are different if you lose money. So, before you start a new venture, you might start by asking if you can write off your losses. If it is a real business, the answer is yes. If it is just a hobby, the answer is no - well, at least if you ask the question this way.
But sometimes, the Internal Revenue Service will actually pay for part of it, prov...
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