Friday, January 28, 2011

Turning a Hobby into a Business

Q.  I'm an avid fly-fisherman & since it's relatively easy to tie flies on the road, I'm thinking of starting a business. Some of the guys at our campground are sure I can write off the motor home, but then I heard that this activity may be classified as a hobby. What do I need to do?

A.  Your concern is a legitimate one, and space prohibits a comprehensive reply here. Please go over to my article, just published, at AboutRVing. At the top of the right hand column, there is a link to my article IRS Tax Info for RVers. Currently under the heading Articles, it is the last link. When you get there, page 6 discusses the difference between a business and a hobby. This will answer many of your concerns. Good luck, and write back and let us know how you're doing!

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