Wednesday, April 4, 2012

Tax benefits of turning mowing hobby into a business?

As his "little side job" means you have to declare the income on a Schedule "C" and you may deduct business expenses to arrive at the net profit. The net profit may be subject to social security tax and gets carried to your 1040 which will probably increase your federal tax liability. Your husband mows laws to earn extra money so I assume he wouldn't run it at a loss.

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