Direct sales side job took a $60 loss this year ($900 in income but more in product purchases, gifts, etc.). Did this help or hurt? How do I know when to call it quits?

[LisaBr · Accepted solution]

The loss in your business will subtract from your total taxable amount owed.

The IRS requires you to classify your self-employment as a hobby if you have not made a profit in the three of the prior five years.  Hobbies are not allowed to take losses.

The following is helpful in understanding how the IRS views businesses profit and losses:

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