Conclusions from Business/Hobby Case Studies

Index - https://steemit.com/tax/@alhofmeister/47caku-tax-blog-index

Introduction
The purpose of this post is to analyze the difference between the business and hobby classifications designated by the IRS.

Calculations

Conclusions
Our set of examples examined the tax liability resultant from the different classifications over a variety of different situations. The one determining factor affecting which classification was preferred was the existence of income outside the taxpayer's business/hobby. If a taxpayer earns a salary outside their other activity, the business classification would be preferred over the hobby classification.

References
https://steemit.com/tax/@alhofmeister/hobby-vs-business-classification
https://steemit.com/tax/@alhofmeister/case-study-75-hobby-vs-business-classification
https://steemit.com/tax/@alhofmeister/case-study-76-hobby-vs-business-classification-reduced-expenses
https://steemit.com/tax/@alhofmeister/case-study-77-hobby-vs-business-classification-reduced-revenues
https://steemit.com/tax/@alhofmeister/case-study-78-hobby-vs-business-classification-with-a-salary
https://steemit.com/tax/@alhofmeister/case-study-79-hobby-vs-business-classification-with-a-salary-and-lowered-revenues

Disclaimer
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.