https://ttlc.intuit.com/community/taxes/discussion/its-a-hobby/01/3685605#M1362741 <P>I had a great woodworking business going it took me 3 years to turn a small profit, but it was great. Then covid hit and all my supplies tripled in price which means I had to increase the price but I keep the profit was very small and my sale dropped by 85%. Needless to say I had to figure out what I going to do until the economy came back. I searched the internet for something I could do with all the wood I had in my shop. Decided to buy a CNC machine and start making wood items with it. This was in April of last year. I still kept my business name in hopes that if people see my additional product it might spark more sales. So at the end of 2024 I claimed another loss on my taxes. Turbo tax sent me a notice saying that if I don't turn a profit this year 2025, the IRS can claim my business to be a hobby.&nbsp; I have claimed a loss for the past 3 years.&nbsp; Any truth to this claim?&nbsp;</P><P>When covid hit I was at a stand still for 2 years, trying to figure out what to do to save my business.</P><P>Any advice will be helpful.</P><P>&nbsp;</P><P>Rod</P> Sat, 24 May 2025 00:55:25 GMT Rodstaxes1 2025-05-24T00:55:25Z https://ttlc.intuit.com/community/taxes/discussion/its-a-hobby/01/3685605#M1362741 <P>I had a great woodworking business going it took me 3 years to turn a small profit, but it was great. Then covid hit and all my supplies tripled in price which means I had to increase the price but I keep the profit was very small and my sale dropped by 85%. Needless to say I had to figure out what I going to do until the economy came back. I searched the internet for something I could do with all the wood I had in my shop. Decided to buy a CNC machine and start making wood items with it. This was in April of last year. I still kept my business name in hopes that if people see my additional product it might spark more sales. So at the end of 2024 I claimed another loss on my taxes. Turbo tax sent me a notice saying that if I don't turn a profit this year 2025, the IRS can claim my business to be a hobby.&nbsp; I have claimed a loss for the past 3 years.&nbsp; Any truth to this claim?&nbsp;</P><P>When covid hit I was at a stand still for 2 years, trying to figure out what to do to save my business.</P><P>Any advice will be helpful.</P><P>&nbsp;</P><P>Rod</P> Sat, 24 May 2025 00:55:25 GMT https://ttlc.intuit.com/community/taxes/discussion/its-a-hobby/01/3685605#M1362741 Rodstaxes1 2025-05-24T00:55:25Z https://ttlc.intuit.com/community/taxes/discussion/re-its-a-hobby/01/3685609#M1362742 <P><A href="https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes" target="_blank">https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes</A><BR /><BR /></P> Sat, 24 May 2025 01:16:09 GMT https://ttlc.intuit.com/community/taxes/discussion/re-its-a-hobby/01/3685609#M1362742 Bsch4477 2025-05-24T01:16:09Z