Business and Personal Finance Dictionary

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• HOBBY LOSS
  
  Loss from a hobby or other activity you do not pursue for profit. You cannot claim expenses from a hobby that exceed the amount of income that you report. For example, if you had a part-time job and made $10,000 and spent $12,000 on rebuilding an antique auto as a hobby, you cannot claim the hobby loss because it would mean you would have no earned income for tax purposes. If you fail to show a profit for three out of five years, the IRS may presume your business is a hobby and disallow losses f
  
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