Hobby taxes and life in general

I just had a discussion with Alan about hobby taxes, and deductions. The big trick here is that it isn’t whether or not you think the thing you’re doing is a hobby or not. “Hobby” is kind of a punative assessment that the IRS gives a person whose sideline gig loses money over 5 years in a row.

So, if your hobby is woodworking, or ceramics, or whatever, just make sure that you report some positive income for at least 2 out of every 5 years. That lets you keep deducting at least some of your expenses from your income from the “business”/hobby.

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