It’s a fact…
The tax law has always treated your hobby activities unfairly. Now, tax reform under the Tax Cuts and Jobs Act has made things even worse.
You see, thanks to this new legislation, you’re prevented from deducting any business expenses against hobby income.
That’s right. Tax reform has turned your tax-law-defined, not-for-profit hobby activity into an unfairly taxed “phantom-income” activity.
But don’t panic quite yet. There are things you can do to protect yourself as you’ll discover when you read my new article titled Tax Tips: Do Your Business Losses Make You an IRS Target? If So, Do This!
Three ways our fact-filled article can help you:
- We’ll explain the preferred solution. To put it simply, turn your hobby activity into a business. How do you go about doing this? We have many practical suggestions waiting for you when you read the full after-tax-reform article.
- We’ll also provide an alternative solution. The hobby-loss rules only apply to individuals and S corporations. You can still come out a winner if you run your hobby activity through a C corporation! We’ll give you full details when you read the full after-tax-reform article.
- We’ll cover many other important related issues as well. You’ll learn the significance of the January 1, 2026 date, how to deal with the loss of cash, and what to do about state taxes. All will be explained when you read the full after-tax-reform article.