Can I take tournament fishing losses off as a business, even though I generally lose money, I am trying to make money.

thefaves · ‎June 1, 2019

I have taken a loss on tournament fishing for the last several years. I truly am trying to make money at this. Can I keep showing a loss since my goal is to show a profit?

Anita01 · ‎June 1, 2019

If you have not made a profit for any 3 of the last 5 years, the IRS would generally consider this a hobby. That does not automatically mean you cannot deduct losses as a business. It does mean, though that you need to be prepared for an audit and offer evidence of intending to make a profit.

Here's an answer from a prior year that gives a good indication of the kind of information you can and should be able to present to the IRS to show intent to make a profit.

https://ttlc.intuit.com/replies/3904839

View solution in original post

Anita01 · ‎June 1, 2019

If you have not made a profit for any 3 of the last 5 years, the IRS would generally consider this a hobby. That does not automatically mean you cannot deduct losses as a business. It does mean, though that you need to be prepared for an audit and offer evidence of intending to make a profit.

Here's an answer from a prior year that gives a good indication of the kind of information you can and should be able to present to the IRS to show intent to make a profit.

https://ttlc.intuit.com/replies/3904839

Can I take tournament fishing losses off as a business, even though I generally lose money, I am trying to make money.