hobby

hobby definition - business

hobby

An activity pursued without the expectation of making a profit. Losses experienced from a hobby are generally deductible only to the extent they can be used as an offset to hobby income. In other words, hobby losses cannot be deducted from other income. The IRS assumes an activity is profit driven only if it results in a taxable profit in three of the last five years.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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