The 10 People Most Likely To Be Audited. Are You One Of Them?
- By
C. Cleveland
People Who Write Off Their Hobbies
The IRS doesn’t pay for people to have fun losing money. The government requires that you report any income you earn from a hobby, but only allows you deduct expenses up to the level of that income. Claiming a loss requires a reasonable expectation of making profit. The IRS requires that you prove you have a legitimate business and not a hobby, so make sure you can provide supporting documents to show this.
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