Unfortunately, there is no clear-cut definition of a Section 162 "trade or business".
For purposes of the Qualified Business Deduction, (Section 199A), personally, I use the "Safe Harbor" (which includes the 250 hour requirement) as a guideline for what the IRS thinks is a "Trade or Business".
The IRS says that 250 hours (and other requirements" is "Safe". How far away are you from 250 hours? While less than 250 hours CAN qualify as a Section 162 business, in my opinion, the farther you are away from 250 hours, the less likely the IRS will think it is a "Trade or Business". So if you are at 200 hours, maybe/probably. If you are 150 hours, maybe??? But if you are at 50 hours (or less), do you really think the IRS would think it is a "Trade or Business"?
