1806029
My business is 3 years old and will be showing a loss for the 3rd time. My plan was to pay off the remaining debt and become profitable this year. Due to my state's governor crippling my business by shutting us down for 6 months I didn't hit my goal. Will my business automatically be classified as a hobby or is it just a possibility that the IRS could consider it being a hobby?
You'll need to sign in or create an account to connect with an expert.
It is not a hard and fast rule especially in the wake of the covid tsunami ... just showing a loss is not the determining factor all by itself. https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide
Thank you!
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
crevitch
Level 2
HRP20
Returning Member
ljsister2024
Level 2
christyconolly
New Member
nphelge
Level 2