Many people dream of turning a hobby into a regular business. Perhaps you enjoy boating and would like to open a charter fishing business. Or maybe you’d like to turn your sewing or photography skills into an income-producing business.
Continue Reading: Pay attention to the tax rules if you turn a hobby into a business
Like many people, you may have dreamed of turning a hobby into a regular business. You won’t have any tax headaches if your new business is profitable. But what if the new enterprise consistently generates losses (your deductions exceed income) and you claim them on your tax return? You can generally deduct losses for expenses incurred in a bona fide business. However, the IRS may step in and say the venture is a hobby — an activity not engaged in for profit — rather than a business. Then you’ll be unable to deduct losses.
Continue Reading: Want to turn a hobby into a business? Watch out for the tax rules
Many small business owners wait too long to prepare their business for sale and consequently leave money on the table when selling. Some owners never plan to sell and others simply get caught off guard by an unexpected illness or unfortunate event. It is best to start preparing your business for sale as soon as possible. Here are several tips to help you increase the value of your business over the next year or two.
Continue Reading: How to Maximize the Value of Your Business