Turn Your Hobby into a Legit Tax Deduction

Don't miss this boat...it's a big one and has lots of room.

The largest tax savings available is a small business. Put instant money in your pocket when you do your taxes this season.  Turn your hobby in to a side business.  You've been thinking that anyway haven't you?

Most of us have at least one hobby, and some many more.  We spend money on our hobby and also use our homes, computers, and a chunk of time to enjoy them.  We look forward to the weekends and evenings to relax and clear our minds, but we don't usually do that through meditation. No, we do that with our favorite past times.


When Does Your Hobby become a Business?

Basically when
you say so.  There is actually no trigger that the IRS has clearly defined.

The #1 rule is that you simply must have an "intent to profit".

Did you know that today you can decide to be in business.  You don't have to file anything, you don't have to pay anything, you don't have to do anything other than ...decide.  And with that decision, the IRS will now allow you to write off all your expenses.  Even the ones you don't know are an expense...like your computer you bought 2 years ago.

I have a few of these hobby-turned-business.

I have been making my own lotions for the last 2 years.  I mess around, experiment with different ingredients, and really enjoy it as a pastime.  I have a lot of supplies I have collected including oils, butters, containers, and small appliances.

As I shared a few samples with my friends and family they asked for more.  So I started charging just to cover my costs.  I have fun, love the mixtures, and I sell a few bottles occasionally.

What I do know is that is clearly the definition of a small part-time business that legitimately fits the bill for tax deductions come tax time.  It doesn't have to make a profit every year, but I do have an intention to make a profit and would love for it to continue to grow.

I also have this blog.  It's really new, about one month old to be exact.  My intention is to share the business ideas that I have accrued over the last 22 years from my full-time business so that others can get out of the 9 to 5 grind.  It has truly been a passion of mine to see others pursue and succeed in their own business too.  This is now my third business, and I can take advantage of the tax code that was written specifically for me and you to help us on this journey.


Hobby Turned Business Ideas

You can turn any hobby in to a business.  Why wouldn't you do that?  Rather than labor over what kind of business you would like to start (some day).  Just keep doing what you are doing with a few tweaks.  The tweak is simply sharing your current hobby with other people.

How about one of these?

Play a sport? ...Teach private lessons

Read a lot of News?...Start a discussion website or blog

Artistic or crafty?... Sell your goods online or at trade shows

Are you uber-organized?
       Partner up with that friend who has the business idea or
       Organize homes for pay

Like to write?
        Write a book and self-publish on Amazon
        Start a blog ( with the intention of making money)
        Start an ezine

Like gossip?...  (who doesn't) Blog or Youtube about your favorite celebrities

Musically Inclined?
       Teach others your talent
       Open a store

Read a lot?
      Get started as a critic or editor
      How about online or local book sales?

Cook?
      Sell your speciality
      Become a private chef

Like to take photos?
       Offer them online
       Start a local business

Like the outdoors?
       Landscaping is in demand
       Open your garden to the public

Educate or train others...in a topic or area you are proficient

Like home design?
      Plenty of homes need a makeover
   
Invent a process or a product

Handy?
      Do home repairs
      Repair computers or other electronics

Good listener?  (There's not many of those)
      Council others 1 on 1
      Start an online advice column


When Should  You Start?

You already did!  Gather up all those hobby induced expenses over the last year, check with your tax professional, declare you are in business (hint: it sounds like "I'm starting a business today"... go ahead, try it out loud) and get a bunch of that money refunded when you file!

What hobby did you turn to a business?  Did you do that today?  Let us know we would love to share in the excitement!