Course Content

Total learning: 224 lessons

Lesson 3: Hobby or Business?

Maybe you aren’t actually running a “business”.  Maybe you actually have an incoming generating hobby.  That’s perfectly fine.  Did you know you can deduct some of your hobby expenses?  You can, and the first step is determining whether or not you actually have a hobby or not.

Hobby or Business – IRS Offers Tips to Decide – irs.gov

How to I distinguish between a hobby and a business? – irs.gov

Even if you can operate as a hobby per the IRS, then you really need to ask these two questions:

Where do I want to go with this?

How worried am I about being sued?

It’s likely that operating as a hobby won’t protect you litigation risk and by definition, it can’t scale.

Like everything in this module.  Check with your CPA or a tax attorney to make sure that they agree with your interpretation of the rules.