Video Tips: How to Distinguish Hobby vs. Business for Tax Purposes

If you are considering earning money from your hobby, it's important to understand the tax implications. According to the IRS, any income generated from a hobby must be reported on your tax return, but it is not eligible for deductions like business expenses. So how does the IRS determine if your activity is considered a hobby or a business? Watch this video for a brief overview.

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The level of care that Barklee provides for our firm and clients is second to none. Jeremy and his team always complete their work on time and to the highest standard. He has become a trusted advisor that we can reach out to when our clients have special needs.

Veronda, CFO of BVCO
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Jeremy is one of the most stand up, honest, encouraging, and proactive individuals my husband and I have ever met. We’ve used Jeremy to help us with taxes, as well as counsel us through the home buying process, as our lender required specific financial data that we weren’t able to supply on our own. Transitioning from a full time teacher to independent contractor was scary, but Jeremy was there every step of the way to walk us through the big change and assure us that we were filing our taxes correctly and that my new business was being run correctly.

He also has given us great peace of mind financially throughout our pre-qualification journey and we couldn’t have done it without him. We are ever grateful for the investment Jeremy has made in our financial wellness and ultimately in our family.

Chelsea
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We are looking forward to using Barklee Financial Group for our 2022 taxes. Jeremy is clearly knowledgeable and is always happy to help answer any questions we might have. Everything is digital which is a huge bonus to us as well. We would recommend to anyone needing a CPA, even for business purposes!

Kolton & Bailee Porter
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Jeremy is incredibly knowledgeable about small business and how to help them shore up their back office to become more successful on the frontline.

Michael Hutton