Taxpayers are required to report income from hobbies on their tax return. There are 3 areas to consider if income is produced from a hobby: 1. First, decide if the activity is a hobby or a business based on the 9 factors below–all 9 factors should be considered –no one factor is decisive: Do you carry on the activity in a businesslike manner? Do you put the time and effort you into the activity to intend to make a profit? Do you depend on income from the activity for your livelihood? If you have losses, are your losses due to
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