One important factor in deeming your activity a hobby or business is to show that you entered into the activity with the objective of making a profit.
Not saying you have to make a profit but sincere purpose of entually making a profit.
A business plan, records, conducting in a business manner, devoting regular time to your business (at least 10 hours per week) will help you proove your efforts in deeming a business and not a hobby.
I am not a tax expert.
Please consult a tax attorney or CPA for more details.
A great book to read: "Lower Your Taxes Big Time" by Sandy Botkin
Showing posts with label home business vs hobby. Show all posts
Showing posts with label home business vs hobby. Show all posts
Monday, February 2, 2009
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