John-H2021
Employee Tax Expert

Self employed

Hello  Fewdevil,

 

Yes, you can still file a schedule C and deduct the expenses. You just need to make sure you are still running it as a business and the IRS doesn't consider it hobby income.

The IRS safe harbor rule is that if you have turned a profit in at least three of five consecutive years, the IRS will presume that you are engaged in it for profit and it is a business.

Here is a link on how the IRS classifies hobby income versus business

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...

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