October 20, 2025

Hobby Vs. Business in Terms of Taxes

Hobby Vs. Business in Terms of Taxes

Under the hobby loss rules, where an activity of the taxpayer is deemed to be a hobby (not for profit) the income is reported on line 8j (activity not engaged in for profit income), Schedule 1, of the 2025 Draft Form 1040. Expenses are not deductible.  Since such an activity generally is not for profit, there are no SE tax issues.

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