Wbt - World Of Business And Taxes

So I got up early to talk with a client and found out it isn't until next weekend, so you get the tax lecture I was going to give. Over the past week I have received emails asking about their hobby and how that income would affect their social security or disability. I say hobby because the questions has got to be is your activity going to be a business or a hobby - per the IRS. If your business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. So let's talk about hobby vs. business. If the IRS classifies your business as a hobby, you'll have to prove that you had a valid profit motive if you want to claim those deductions. The IRS expects that if you start a business, you intend to make money at it. If you don't, your business might be a hobby. To determine if your business is a hobby, the IRS looks at numerous factors, including the following:- Do you put in the necessar