Lower Your Taxes - BIG TIME! 2023-2024: Small Business Wealth Building and Tax Reduction Secrets from an IRS Insider, 9th Edition

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

Chapter Overview

•   Understand the huge benefits of business losses.

•   Learn why the favorite IRS weapon against taxpayers is to classify an activity as a hobby rather than a business.

•   Learn when the IRS is required to presume that you are in business.

•   Learn about the election that requires the IRS to postpone any determination.

•   Learn about the criteria to be deemed a business and not a hobby.

•   Learn how to bulletproof your activities from being classified as a hobby. (This one concept will pay for this book alone.)

This is a crucial chapter. In fact, for many ...