On Tue, 30 Dec 2003 18:53:09 -0600, dave weil
wrote:
Its' a subjective judgment on the part of the IRS. Earn $1000 and deduct
$1000 and the IRS will judge it a hobby. Earn $100k and deduct the same
$1k and the IRS will have no problem with it being a business. THe
dividing line lies somewhere in the middle. :-)

Actually, you can lose money on a 'business' for a year or two before
the IRS decides conclusively that it's a hobby and not a business.
Most startups are not profitable from the get-go.

I think that Kal is angling for the $100,000 instead of the $1000.

Both reality and desire lie somewhere in-between. ;-)

Kal