Hobbies are a great way to occupy your free time. If you’re lucky, you may earn a few bucks in the process and if you’re even luckier, you may earn enough to offset some or all the costs of your hobby. The IRS has strict rules about what is a hobby and what is a business and those rules matter now more than ever.
Before the Tax Cuts and Jobs Act (“TCJA”) you could deduct hobby expenses you incurred pursing your hobby up to the amount of earnings as a miscellaneous itemized deduction if your total miscellaneous itemized deductions exceeded 2% of your adjusted gross income (“AGI”). Now, things have changed.
What’s the differenceRead More