Farm or Hobby?

Making sure your losses hold up as a real business
Course #: FN-023
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Field Note Description

Had a few loss years on the farm and wondering if the IRS could call it a hobby? Losing money doesn’t make you a hobby — but running like one can cost you the tax benefit of your losses. This Field Note explains how the profit-motive test really works, what makes an operation look like a genuine business, and exactly what to ask your tax advisor so your losses hold up.