taxes

Video: Make your hobby pay for itself

 

Reporter talking:  Are you making some money off your hobby? If so, you might want to turn your hobby into a business.

Added income from a hobby is great, for you and the IRS…because that extra money is taxable.

So if your hobby is profitable, consider making it a full-fledged business.

The tax filing tasks aren't too bad. As a sole proprietor, you'll simply file a Schedule C or C-EZ along with your personal Form 1040 each year.

But many expenses you incur to operate your hobby-turned-business can be deducted.

And these write-offs will reduce the amount of tax you owe the IRS on your new endeavor's earnings.

Tag: You can find more business tax breaks by visiting the 2011Tax Guide at Bankrate.com.

« Back to the Tax Deductions page

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement
advertisement

Blog

Mitch Strohm

Auto loan rates for Monday, August 29

Be sure to shop around for the best auto loan rates available.  ... Read more


Connect with us