- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
You don't have a choice with respect to treating your activity as a hobby or business with the goal of saving on taxes. It either is a hobby or a business. A hobby is an activity engaged in without a profit motive, one in which you typically don't earn a profit and do not devote a significant amount of time and energy on it.
A business is an activity engaged in in a professional manner to earn a profit and one in which you devote a significant amount of time and energy. By default, you would expect a business to earn a profit in at least three out of the past five years, or it will likely be considered a hobby by the IRS.
You can see this article for more clarity: Hobby or Business?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎April 9, 2024
5:44 PM