THE SUNLIGHT TAX BLOG:
Tax and Money Education for Creative People, Freelancers and Solopreneurs
search A TOPIC
Categories
- Business Management 11
- Creative Specific 3
- Estimated Quarterly Taxes 2
- General Economy; Tax Policy and Legislation 32
- Get to know Hannah Cole 8
- Interviews and personal stories 23
- Personal Finance 16
- Personal and Career Development 15
- Practical and Tactical Tax 48
- Retirement and Future Success 22
- Sunlight Podcast 123
- Tax Deductions for Freelancers and Self-Employed 4
Business vs. Hobby & the IRS 9 Point Test for Profit Motive
LISTEN AND SUBSCRIBE HERE
Business vs. Hobby & the IRS 9 Point Test for Profit Motive
Today, I’m talking about the tax laws related to distinguishing between a hobby and a legitimate business when you’re a creative professional. I’m also explaining the IRS's view of profit motive as the key factor and discussing how you can determine whether you have a business or hobby.
Join me in this episode to get some advice and tips on how you can prove profit motive and avoid being wrongly classified as a hobby by the IRS.
LISTEN AND SUBSCRIBE HERE
Today, I’m talking about the tax laws related to distinguishing between a hobby and a legitimate business when you’re a creative professional. I’m also explaining the IRS's view of profit motive as the key factor and discussing how you can determine whether you have a business or hobby.
Join me in this episode to get some advice and tips on how you can prove profit motive and avoid being wrongly classified as a hobby by the IRS.
Also mentioned in today’s episode:
Why profit motive is so important 5:35
The IRS’s nine-factor test for determining if a creative hobby is a business 19:35
The hobby loss rule and how it’s applied 33:07
If you enjoyed this episode, please rate, review and share it!
Links:
IRS audit technique guide: https://www.irs.gov/pub/irs-pdf/p5558.pdf
The Sunlight Podcast Episode 67: Your Business Already Started
An Audit Nightmare Turned Artist Victory: An Interview with Susan Crile
What are your money concerns?
Suggest a blog topic for Hannah here.