MLchartDataset catalogue

Hobby loss

Term · Law · MLC-T-LAW-002434

A loss from an activity carried on mainly for recreation or enjoyment instead of profit, which the Internal Revenue Code does not let a taxpayer deduct against other income. Profit motive is judged by factors such as the taxpayer's expertise, time invested and history of profits, and earning a profit in three of five years raises a presumption of a business. Hobby income remains taxable, while hobby expenses have not been deductible since 2018.

Table 1. Record
IdentifierMLC-T-LAW-002434
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-002434",
  "term": "Hobby loss",
  "field": "Law",
  "definition": "A loss from an activity carried on mainly for recreation or enjoyment instead of profit, which the Internal Revenue Code does not let a taxpayer deduct against other income. Profit motive is judged by factors such as the taxpayer's expertise, time invested and history of profits, and earning a profit in three of five years raises a presumption of a business. Hobby income remains taxable, while hobby expenses have not been deductible since 2018.",
  "url": "https://mlchart.com/terminology/law/hobby-loss/"
}

Record 2,350 of 5,441 in Law terminology (MLC-0107). Request the full dataset.