A hobby or business - how the IRS determines

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KipperCat wrote
on Mar 6, 2012 12:20 PM

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There is an old saying in Texas: "In the horse business beading world, you can make a small fortune--out of a large one."

This article discusses the several factors the IRS uses to consider whether an activity is a hobby or a business.  It is written for horse owners, but the explanations are clear enough to help beaders as well.

http://asci.uvm.edu/equine/law/horselaw/hobby.htm

 

 

 

 

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megabgirl wrote
on Mar 7, 2012 12:26 PM

I got a business license so I could participate in many craft fairs that required one. From then on, it was official.

 

Even though most years my expenses outweigh my "profits" I'm still an official business. At least, that's what I keep telling myself. ;-)

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SEllen 2 wrote
on Mar 8, 2012 11:59 AM

Just bumping up to get spammers off top of page.

 

 sellen Smile

southwest Texas USA

 

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