Can you please clarify your income? Do you say, " Last year I had cash income", do you mean tax year 2020 or 2021?
If you had no income in 2021, did you indeed have a business? The IRS considers these points to determine if there was a trade or business.
A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. The facts and circumstances of each case determine whether an activity is a trade or business. Some of the important facts and circumstances used to make this determination include:
- regularity of the activities,
- regularity of the transactions,
- production of income, and
- ongoing efforts to further the interests of your business.
