In Good Company, Louisville20 Feb 2025

Business or Hobby? Why It Matters For Your Taxes

Is your side hustle just a passion project, or is it a real business in the eyes of the IRS? The way you classify your work can make a huge difference when tax season rolls around—determining whether you can deduct expenses or end up paying more in taxes. In this episode, we're breaking down the IRS criteria for distinguishing between a hobby and a business, and what you can do to ensure your work is recognized as a legitimate business.

You'll learn key strategies to protect your deductions, avoid unnecessary scrutiny, and set yourself up for financial success. Plus, hear a real-life cautionary tale about an Etsy seller who learned the hard way why business structure matters. Whether you're just starting out or you've been at this for a while, these tips will help you keep more of your hard-earned money.

Tune in to hear:

How to prove your business is legitimate to the IRS
The importance of keeping detailed financial records
Why intent to make a profit matters for tax deductions
The impact of separating personal and business finances
A real-life example of how misclassifying a business cost thousands in taxes

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Connect with Ashley Chamberlain:

Website: chamberlainandgoodcompany.com

Facebook: Chamberlain and Good Company LLC

Instagram: chamberlaingoodco

LinkedIn: Ashley Chamberlain

YouTube: Ashley Chamberlain

Keywords:

In Good Company podcast, Tax deductions, Small business taxes, Entrepreneur tax tips, Self-employment tax savings, Home office deductions, Mileage tracking, Business software deductions, Professional development expenses, Self-employed health insurance, Tax season organization

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