What used to be pizza money has now become rent money (maybe actually more). At what point does hobby turn into business from an IRS perspective?
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Dec 09, 2018 - 08:34 AM
The IRS considers it a hobby if you sustain losses for 5 straight years. Otherwise, if it is generating an income it is considered a business. It is advantageous for you to treat it as a business so you can deduct expenses, so I would say right away.
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