@global9 wrote:
This is the case with a C Corporation, where this situation (Investment Income exceeding Operating Expenses) would be considered a net profit.
A major difference in that case is that C corporations (and shareholders) are subject to double taxation and do not pass losses through to shareholders but generate NOLs. As a result, there is not much of an incentive to generate and/or use deductible expenses to offset income from what might be considered to be a hobby.
