How can I change my small business to hobby? Should I just not file the business in the new tax return ?

[Dodogary]

My small has loss for two years, I want to change to hobby on the new tax return. What should I do ? Just not file it or anything I need to report . Thanks

[KatrinaB48]

Yes, all income needs to be reported, even if it's from a hobby. Prior to the tax year 2018, hobby-related expenses could be deducted, but this is no longer the case. Please follow the directions below to enter your income as hobby income:

1. Log in and open your return.
2. Click the Federal tab from the left side of the screen.'
3. Click the Wages & Income tab, unless already on the landing screen.
4. Scroll down to Less Common Income and click Start beside Miscellaneous Income, 1099-A, 1099-C
5. Click Start beside Hobby Income and Expenses 

[Dodogary]

Thank you for your reply. One more question if my business is LLC, and has EIN#, can i still do it?  

[DianeC958]

No, if you are going to report the activity as a hobby you do not want to use the  LLC. If you continue to report a hobby using the LLC it could trigger an audit of your tax return.

When the IRS Classifies your Business as a Hobby