Is Your Sideline Activity a Business (Good) or a Hobby (Not Good)?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you have a "Sideline Activity" that you think of as a Business? From this "Sideline Activity", are you claiming Tax Losses on your Form 1040? Will the IRS consider your Sideline a Business and allow your Loss Deductions? The IRS likes to claim that money-losing sideline activities are hobbies rather than businesses. The federal income tax rules for hobbies have been anti-taxpayer for years, and now an unfavorable change enacted in the Tax Cuts and Jobs Act (TCJA) made things even worse for 2018-2025. If you have ...