How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Type Your Tax Question Here...
Ed Johnson is online now
A new question is answered every 9 seconds

How many years can you claim a loss on a side business

Customer Question

I have a side business doing videography/photography
Submitted: 7 years ago.
Category: Tax
Expert:  Ed Johnson replied 7 years ago.

Dear msm,


Thank you for your question.


I apologize for it taking so long but it was in the wrong section. We just picked it up in tax.


The IRS says that if you do not make a profit after a period of time then you can be classified as a hobby. The primary difference to you is that if you are a hobby, you can normally only write off the expenses to the level of income you bring in.


The general rule is making a profit in at least 2 of the last 5 years. BUT there is an exception that can allow you to continue to operate as a business.


Read more about this here:,,id=172833,00.html,,id=186056,00.html




Related Tax Questions