Question

Commissions

Forum|Forum|2 years ago
August 30, 2023
1 reply
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I make very little commissions each year on subscription vitamins that others purchase. Usually commissions of $900 for the entire year. I keep the business going and pay the membership each year because it allows me to purchase the vitamins for myself with the commissions money. Even though I may not make alot of money in this self employment business, I still have a few deductions but not many. My question is how long will the IRS allow me to continue deducting very minimal deductions on a business that doesn't continue to grow?

Ask the Experts - Self-Employed - Aug 2023

TeriH

What a great way to get your supplements!

If your business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby. If the IRS classifies your business as a hobby, it won't allow you to deduct any expenses or take any loss for it on your tax return.

So, as long as you are showing a profit, you won't trigger the hobby rules.

Best wishes,
teri

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