Hobby Activities
Hobby activities are activities undertaken not for profit motives but for personal pleasure. Under Internal Revenue Code Section 165, “losses of property not connected with a trade or business or a transaction entered into for profit” are not deductible except upon a casualty or theft. In addition, the general rule under Section 183(a) of the Internal Revenue Code does not allow a deduction for an activity that is not engaged in for profit. However, Section 183(b) allows two types of deductions attributable to a hobby: (1) deductions that would be allowable to the taxpayer in a taxable year whether or not such activity is engaged in for profit, and (2) deductions that would be allowable to the taxpayer if the activity were engaged in for profit, but only to the extent that the income from the activity exceeds the deductions allowable by the first type of deduction.
Read more about this topic: Treasury Regulation 1.183-2
Famous quotes containing the words hobby and/or activities:
“My hobby more and more is likely to be common school education, or universal education.”
—Rutherford Birchard Hayes (1822–1893)
“Love and work are viewed and experienced as totally separate activities motivated by separate needs. Yet, when we think about it, our common sense tells us that our most inspired, creative acts are deeply tied to our need to love and that, when we lack love, we find it difficult to work creatively; that work without love is dead, mechanical, sheer competence without vitality, that love without work grows boring, monotonous, lacks depth and passion.”
—Marta Zahaykevich, Ucranian born-U.S. psychitrist. “Critical Perspectives on Adult Women’s Development,” (1980)