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Article: Biz basics can help hobby hop to for-profit venture.(Small Business)
- Article from:
- Crain's Cleveland Business
- Article date:
- December 12, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Peter DeMarco
Scores of entrepreneurs begin with a passion - a hobby or a side interest that eventually becomes a means of earning revenue.
When it's a hobby, there are no tax benefits associated with it. When it becomes a business, however, the owner can deduct expenses from income, using losses to offset gains. So when does a hobby become a for-profit business?
It's an important issue as technology has created new ways to inspire and enable hobbyists. Whole cable networks have sprung up around celebrity hobbyists who are marketing and selling their crafts in big ways. The Internet, especially eBay, has created new means for hobbyists ...