| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,790,113,136 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Hobby Loss |
Also found in: Legal | 0.02 sec. |
|
Hobby Loss A loss a taxpayer may not deduct from his/her taxable income because it occurred in the pursuit of personal pleasure. Suppose one sells lemonade for fun on Saturdays and takes a loss in doing so. This will likely be considered a hobby loss because one is not likely to be actively pursuing profit. The IRS applies what is called the "hobby loss rule" to determine whether it considers a loss to be hobby or business related; this rule states that an activity profitable three years out of every five can be considered a business. So the lemonade stand, which may never be profitable, will probably be considered a hobby loss. Hobby Loss A nondeductible loss arising from a personal hobby as contrasted with a loss arising from an activity engaged in for profit. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
| Determine whether the activity is possibly subject to the hobby loss limitations. There are several hurdles that the shareholders must face before a loss may be used: hobby loss rules (Sec. If clients choose the self-employment route the hobby loss rules may need to be considered when a loss results from the activity. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|