Do you make money from a hobby? If so, you have taxable income that must be reported on your tax return. A taxpayer who engages in an activity for sport or recreation is considered to have a hobby, and the expenses incurred are generally nondeductible. But a taxpayer who operates a business for profit may be able to deduct the related expenses from the income generated. The IRS lists nine factors to help you determine that your activity is a business. They include keeping accurate books and records, putting in the time and effort to make a profit, and depending on income from the activity for your livelihood. Click here for more information. Contact the Cg Team with questions via the form to the right or call 732.676.4100. © 2019
Source:
“Tips for Taxpayers Who Make Money from a Hobby.” Internal Revenue Service. July 1, 2019. Accessed July 16, 2019. https://www.irs.gov/newsroom/tips-for-taxpayers-who-make-money-from-a-hobby.