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NE Ohio | I think the tax code says you're at risk for being classified as a hobby if you don't show a profit in 3 of any 5 consecutive years. There's also a clause that you have to show intention to make a profit and run the operation like a business (records, biz plan, etc).
I always question if Section 179 is considered in this...When you do 100% depreciation on an asset, you can take a profitable operation into a loss on paper very easily. | |
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Losing money
