10/19/2026
🎣 Think You Can Turn Your Hobby Into a Tax Write-Off? Think Again!
You've spent thousands on fishing gear, boating equipment, photography, or another expensive hobby.
So what happens if you start making a little money from it? Can you suddenly deduct all those expenses as business costs?
Not so fast!
The IRS draws an important distinction between a legitimate business and a hobby that happens to generate income. And getting that distinction wrong could mean denied deductions, additional taxes, and even penalties.
In our latest video, Alex McGowin, CPA, explains:
✅ How the IRS determines whether you're running a business or pursuing a hobby
✅ Why earning income doesn't automatically qualify your expenses as deductible
✅ The nine factors the IRS considers when evaluating your activity
✅ How a real tax court case involving horse breeding illustrates the risks
✅ Steps you can take to support your business deductions
💡 The important takeaway? If you want the tax benefits of operating a business, you need to be intentional about treating it like one.
📺Watch the full video: https://youtu.be/P1OlRFloLDo
📜Read the article: https://mcgowintax.com/articles/side-gig-or-hobby-how-the-irs-decides-whether-you-can-deduct-your-expenses
Earning some income from a side gig doesn’t make it a business. Learn how the IRS hobby loss rules work, what the nine profit factors are, and how to protect your deductions.
