The tax advantage for sole proprietorships does not last forever.The businessperson must make money in order to be considered a business.Money must be made for how many years in order to be considered a business and not a hobby by the IRS?

Question

Quizplus · Accepted Answer

The IRS generally expects a business to make a profit in at least three out of five consecutive years to be considered a legitimate business rather than a hobby.

The Tax Advantage for Sole Proprietorships Does Not Last Forever