Is Your Business a Hobby? pt. 7
Final section! We’re almost there.
I.) Elements of personal pleasure or recreation
While I hate to beat a dead horse, a lot of businesses I’ve seen disallowed have to do with something that started out as a hobby. Do you garden and sell your plants at a farm stand? Are you a antique collector who sells antiques on eBay? A while back I posted a quote in Do you have to suffer for your business? where I mentioned that the Tax Court has actually mentioned in a a ruling that suffering doesn’t have to be part of a business in order to make it a viable business. One thing to keep in mind is that if you do breed poodles and refer to them as “your babies” in the court, your chances just got a little smaller of claiming that your kennel is an actual business.
And with that…I’m done! Next series–freelancing businesses and it’s many intricacies. See you tomorrow.