Solved: I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

 
1 Best answer

Accepted Solutions
Level 4

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

You would file Schedule C and take the loss. If you do it to make money, not just for the fun of it, it is a business and should be treated that way, not as a hobby. You will need to upgrade to Turbotax Self-Employed or Home and Business. 

View solution in original post

4 Replies
Level 4

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

You would file Schedule C and take the loss. If you do it to make money, not just for the fun of it, it is a business and should be treated that way, not as a hobby. You will need to upgrade to Turbotax Self-Employed or Home and Business. 

View solution in original post

New Member

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

Is there a limit to how many years in a row you can show a loss?
Level 4

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

No. The IRS expects a profit within the first 5 years, but nothing is written in stone. A constant loss may need to be explained.
New Member

I have an average of 1200 income loss for the last several years, Can I claim my business as a loss or do I need to claim my Avon business as a “Hobby”?

It has been more than 5 yrs. who and how would I explain to?
Dynamic Ads
v
Privacy Settings