Tax Concepts
Hobby loss rules
Rules that disallow loss deductions for activities the IRS determines are not engaged in for profit. If an activity doesn't show a profit in at least 3 of 5 consecutive years, it may be reclassified as a hobby.
Rules that disallow loss deductions for activities the IRS determines are not engaged in for profit. If an activity doesn't show a profit in at least 3 of 5 consecutive years, it may be reclassified as a hobby.