Hobby Losses vs Business Losses.What's the Difference?
October 2, 2013
For federal tax purposes, the determination of “business” or “hobby” is a matter of deduction. If your new venture is considered a business, you can deduct losses against other income. However, when the activity is classified as a hobby, the “hobby loss” rules limit the amount you can write off. Expenses you incur might be deductible only if you itemize...
Tags: Hobby losses