The IRS hobby rule of thumb. For tax reporting purposes, the IRS uses the following rule of thumb to determine if a venture is a business or a hobby. If a business reports a net profit in at least 3 out of 5 years, it is a for-profit business. If a business reports a net loss in more than 2 out of 5 years, it is a not-for-profit hobby.
More Rules of Thumb
More Rules of Thumb
No comments:
Post a Comment