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TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 14458
Experience:  15 years of experience in financial advising with emphasis on tax issues.
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Is it good financially to go into business?

Customer Question

Is it good financially to go into business for myself?
Submitted: 1 year ago.
Category: Finance
Expert:  TaxRobin replied 1 year ago.

Hello

That really depends on the business and if you are suited to making money in that specific venture.

If a business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. If the IRS classifies your business as a hobby, you'll have to prove that you had a valid profit motive if you want to claim those deductions.

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit.

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