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Posted by VT_Syrup on 2/22/21 6:07pm
From what I've read, if your business is classified by the IRS as a hobby, you don't loose the deductions completely, you just can't carry use them to offset other kinds of income.
So suppose a person tries to start up a notary business, and looses money for three out of the last five years. This year, the notary decides to get out of the business, but does 2 closings in January that were already scheduled, for a total of $300. The notary also decides to buy e & o insurance for this year. So after deducting mileage and insurance, the business looses $5. The notary can report a business income of 0. The notary cannot take a $5 loss and apply it against the notary's pension income. |
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