Thread: Tax Return
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Old Wed Feb 23, 2011, 06:10pm
M&M Guy M&M Guy is offline
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Quote:
Originally Posted by Snaqwells View Post
Check with your local tax professional, but my understanding is that you can only show a loss so many years in a row. I'm not sure of that, nor am I sure of what the consequences are.
You have to show a profit at least some of the years, (something like 2 out of the last 5?) otherwise the "business" becomes a "hobby". You would still need to report the income, but you cannot deduct any expenses because they would not be related to a "business".
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