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Business or Hobby?

17th September 2019

Keeping busy — but is it just a hobby, or are you in business?

It is important to understand the differences between a hobby and a business for tax, insurance and legal purposes among other things. For one thing, there will be certain tax and other obligations that start once you are in business. However it’s a myth that there is a dollar threshold to be in a business (some people can have very expensive hobbies).

What matters is whether, as a whole, your activity is “commercial”, with an aim to make a profit. Once you are in business, there are dollar thresholds that can affect what you can claim for tax purposes.

Want to know the difference between a hobby & a business read more here Business or Hobby .pdf