BizSugar.com › Taxes › Small business or hobby?

This video from SBTV examines whether an activity can be considered a small business or hobby especially for tax purposes according to Internal Revenue Service guidelines. A key point to remember is that to be a business, an activity must generate a profit within a certain period of time sometimes varying based on the type of activity. If a hobby becomes a business, something that occurs when and if your hobby begins to turn a profit, only certain deductions from the expenses incurred while pursuing the activity may be considered. Other guidelines also may come into play when deciding whether an activity is a hobby or business. For more, watch the following video from SBTV.