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Video Tips: Hobby Vs. Business in Terms of Taxes

Video Tips: Hobby Vs. Business in Terms of Taxes
Under the hobby loss rules, when 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 is not for profit, there are no self-employment tax issues.



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