We all have certain hobbies. Some we lose money and some we make money. Some are for fun and some are not. If you're consistently earning a profit from you're hobby, then there may be certain tax implications. The question is: is it a hobby or a business? Here's several questions to determine:
1. Is there an intent to make a profit? or it it just for fun?
2. Are you expecting income from your hobby?
3. Do you consistently make a profit from your "hobby"?
4. Have you re-structured your "hobby" to increase profitability?
There are different tax consequences if your hobby is actually a hobby or if your hobby qualifies as a business.
source: http://www.irs.gov/newsroom/article/0,,id=172833,00.html
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