IRS Form 5213 for the Hobby Loss Rules
When a U.S. taxpayer has a hobby, any income generated from the hobby must be reported on their tax return. However, there are special rules with respect to deducting hobby related expenses.
Give Your Hobby a Boost – Use an LLC Partnership or S Corporation
The hobby loss rules for U.S. tax purposes can be quite complex and nuanced. Many business owners can form a legal entity to try and give their operation a boost in the right direction.