8

How to Shield Yourself from the IRS Weapon of Classifying a Business as a Hobby

 

I have trouble reconciling my net income with my gross habits.

—Errol Flynn, actor

This is a crucial chapter. In fact, for many readers, this one chapter will pay for this book numerous times. The reason is that classifying an activity as a hobby instead of a business is the Internal Revenue Service’s (IRS’s) favorite weapon because it yields such nice results for the IRS. If you have a network marketing business or you are conducting a side business, you should read this chapter several times and apply every suggestion made.

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