hobby loss

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hobby loss

n. in income tax, a loss from a business activity engaged in more for enjoyment than for profit, which can be deducted against annual income only.

References in periodicals archive ?
Foster (21) resulted in a negative outcome on hobby losses for the taxpayer who maintained the records for his horse racing and breeding business on QuickBooks, but did so, according to the court, only "in order to memorialize transactions for tax reporting purposes, rather than to analyze expenses to determine profitability.
Hobby losses can be claimed as a deduction up to the amount you are claiming as taxable income.
distributions, kiddie tax provisions, vacation home rules, capital gains and losses, self-employed provisions, depreciation, hobby losses, phase-out of itemized deductions, and casualty losses.