Business or Hobby...What Would the IRS Call YOUR Business?
Author: Vicky Collins
One thing we know for sure... direct sellers start their businesses for a wide variety of reasons. Some want to build a dynasty, some want the tax benefits, some do it to buy and share a product they believe in, while others are simply looking for a way to have fun and make a little money on the side.
Taking time to define your business purpose and goals is critical. Why? Because the Internal Revenue Service (IRS) has different rules for each level of interest you take in your business. You want to be familiar with these rules, as they have a dramatic impact on your ability to take deductions or even losses on your tax return. To determine how the IRS views your business, we will focu...
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