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New Member
posted Jun 3, 2019 11:40:26 AM

Hobby Milage Expense

What rate do you use for hobby milage expense?

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1 Best answer
Level 9
Jun 3, 2019 11:40:31 AM

You can use the business rate- 54 cents per mile for business miles driven

Hobby income is treated like business income except that your deductions are limited to your income- with a "for profit" business if you have losses they can be treated as negative income (net operating loss) but hobby income can only go to zero, in which case it does not have to be reported, but you must keep track of the records in case the IRS audits you.

1 Replies
Level 9
Jun 3, 2019 11:40:31 AM

You can use the business rate- 54 cents per mile for business miles driven

Hobby income is treated like business income except that your deductions are limited to your income- with a "for profit" business if you have losses they can be treated as negative income (net operating loss) but hobby income can only go to zero, in which case it does not have to be reported, but you must keep track of the records in case the IRS audits you.