12 \\ Side Hustle Tax Mistakes: How to Avoid IRS Hobby Loss Rules and Audits
- Author
- Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
- Published
- Wed 30 Nov 2022
- Episode Link
- https://smallbusinessfinance.podbean.com/e/12-losing-money-in-your-small-business-you-might-be-at-risk-of-an-irs-audit/
If your side hustle or small business is losing money, you need to know how to stay out of trouble with the IRS. In this episode, we explain the hobby loss rules and how the IRS decides if your business is legitimate or just a hobby. You’ll learn how to document your business, the two safe harbor tests, and practical steps that help prove you are running a for-profit business. Using real-life case studies, we show you how business owners fought the IRS and won by keeping records, hiring experts, and making strategic decisions. If you’re transitioning from side hustle to full-time business, this episode gives you clear cpa advice, tax strategies, and tax planning steps to reduce risk, protect your deductions, and avoid an IRS audit.
Next Steps:
💰Pay Less in Taxes – Start Here! 💰
☎️ Are you overpaying in taxes every year? Schedule a FREE discovery call to find out!
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