When it comes to taxes, the distinction between a business and a hobby is crucial. A business is an activity that is done to make a profit, while a hobby is an activity done for pleasure or relaxation. The Internal Revenue Service (IRS) defines a business as “an activity carried on for profit.” The difference between a hobby and a business is important for tax purposes because businesses are allowed to take certain deductions that hobbyists are not. In this episode of the Jeff Trapp Podcast, Jeff will break it all down to help you better understand the key differences. He'll also help you better grasp the steps you need to take to ensure you can legally qualify for those business deductions for your new business. If you would like to learn more about how we help business owners like yourself please visit us at https://thetaxplanningpros.com/ to schedule a free tax consultation. Don't forget to like, subscribe, and share this episode.
