http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html Family Lifestyle with Children and Parenting Tue, 22 May 2012 00:27:18 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html/comment-page-1#comment-10549 SDD Sat, 06 Feb 2010 10:45:32 +0000 http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html#comment-10549 Making money would be definitive proof (to the IRS) that your venture is a business, not a hobby, but it is not a requirement. The test is whether you are running it as a business -- that is the way someone would do it if they were seriously trying to make money at it. That's a bit vague, but intentionally so. Now, if you run this thing for five years and never make money and it appears you are just trying to make a hobby look like a business, you could be challenged and owe a lot of back taxes. But if it "looks" like real business in other importatn ways, the fact that you are not making a profit does not disqualify it. Making money would be definitive proof (to the IRS) that your venture is a business, not a hobby, but it is not a requirement. The test is whether you are running it as a business — that is the way someone would do it if they were seriously trying to make money at it. That’s a bit vague, but intentionally so. Now, if you run this thing for five years and never make money and it appears you are just trying to make a hobby look like a business, you could be challenged and owe a lot of back taxes. But if it "looks" like real business in other importatn ways, the fact that you are not making a profit does not disqualify it.

]]> http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html/comment-page-1#comment-10550 mythdiesel Sat, 06 Feb 2010 10:45:32 +0000 http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html#comment-10550 I believe as long as you don't make in access of around $3000-6000, than you're okay. I believe as long as you don’t make in access of around $3000-6000, than you’re okay.

]]> http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html/comment-page-1#comment-10548 Jager Sat, 06 Feb 2010 10:45:31 +0000 http://familyhit.com/happyfamily/family-fun/hobby-and-leisure/how-much-money-is-needed-to-be-made-for-a-hobby-becomes-a-bussiness.html#comment-10548 http://www.irs.gov/newsroom/article/0,,id=172833,00.html http://www.irs.gov/newsroom/article/0,,id=172833,00.html

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