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March 31, 2025
Question

How long can I report business losses

  • March 31, 2025
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    LindaS5247
    March 31, 2025

    In general, you can report business losses no more than three out of five years or you may have to convert your business to a hobby. You will not be able to deduct business expenses.

     

    The IRS allows you to claim business losses for three out of five tax years. Afterward, it may classify your business as a hobby, making it ineligible for tax deductions.

     

    There is no actual limit on the number of years your business can claim a loss. All facts and circumstances would be considered by the IRS before disallowing your business losses and converting your business to a hobby.  T

     

    You can click on the link for additional information: IRS Hobby or Business?


     

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