| |
Yes |
No |
| 1. Is the activity carried on in a business-like manner? |
|
|
| 2. Does the business owner have the required expertise in the
activity? |
|
|
| 3. Does the business owner devote sufficient time and effort
to the activity? |
|
|
| 4. Are asset values appreciation (or expected to appreciate)? |
|
|
| 5. Has the business owner devoted sufficient time and effort
to the activity? |
|
|
| 6. Are there sufficient amounts of profits in relation to the
losses? |
|
|
| 7. Does the business owner rely on the activity for survival
and not have other significant financial
resources? |
|
|
| 8. Does the activity seem to be more business than pleasure or
recreation? |
|
|
| 9. Does the activity have a history of more income than losses? |
|
|
| 10. Are there any other factors indicative of a business as opposed
to a hobby? |
|
|
No answer suggests this is a hobby rather than a business. Actual
determination is based upon facts and circumstances. No one issue is
the deciding factor.
We have compiled a list of recent court cases which highlight different
scenarios and the determinations made in each case.
View recent court cases here.
