Question

How can I change my small business to hobby? Should I just not file the business in the new tax return ?

Forum|Forum|6 years ago
March 9, 2020
1 reply
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My small has loss for two years, I want to change to hobby on the new tax return. What should I do ? Just not file it or anything I need to report . Thanks

Not A Product Question

K

KatrinaB48

Yes, all income needs to be reported, even if it's from a hobby. Prior to the tax year 2018, hobby-related expenses could be deducted, but this is no longer the case. Please follow the directions below to enter your income as hobby income:

Log in and open your return.
Click the Federal tab from the left side of the screen.'
Click the Wages & Income tab, unless already on the landing screen.
Scroll down to Less Common Income and click Start beside Miscellaneous Income, 1099-A, 1099-C
Click Start beside Hobby Income and Expenses

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D

DodogaryAuthor

Thank you for your reply. One more question if my business is LLC, and has EIN#, can i still do it?

D

DianeC958

No, if you are going to report the activity as a hobby you do not want to use the LLC. If you continue to report a hobby using the LLC it could trigger an audit of your tax return.

When the IRS Classifies your Business as a Hobby

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