Let’s clear up this IRS rule about hobby profits and losses
March 6th, 2014 → 8:14 am @ Carol
I read this misinformation on an unnamed blog recently: To prove that your blog or any business is a legitimate business then you must make a profit 3 out of 5 years that you are in business. That’s a common misunderstanding of the IRS rules. What the IRS states is this: “An activity is presumed […]
Years of losses from business can still be deducted
October 1st, 2013 → 8:07 pm @ Carol
Many authors and other self-employed business owners seem to think that if they suffer years of losses, their business will be classified as a hobby (which is quite punishing from a tax perspective). But, I always explain that a business can have years of losses and still be considered a legitimate business. Here’s an excellent […]
Is hobby income from writing taxable?
January 21st, 2013 → 8:37 am @ Carol
Any income you make from writing, freelancing, your blog, etc is taxable income, even if it’s just a hobby.
Who says you’re a professional writer?
January 30th, 2012 → 8:19 am @ Carol
Nailing Down Your Professional Status By Gary A. Hensley In the old television show Sanford and Son, Fred Sanford asks a man, “Who says you’re an attorney?” “I do,” the man says. Fred says, “Who says you’re not?” The man mumbles, “The State of California.” You don’t want to be on the wrong end of […]
Not a hobby writer?
December 26th, 2011 → 2:00 pm @ Carol
How can I show that I’m not a hobby writer? I intend to make a profit; it just hasn’t happened yet. Keep a log of your work and your submissions to magazines, agents, publishers, etc. A submission log can be very helpful to show you are actively attempting to make a profit at this. Look […]
