Question: How do you distinguish between a business and a hobby?
Answer:
In making the distinction between a hobby or business activity, take into account all facts and circumstances with respect to the activity. No one factor alone is decisive. You must generally consider these factors to establish that an activity is a business engaged in making a profit:
Consider nine factors when determining whether an activity is a hobby:
Read the article here on the IRS website:
Hobby or Business? IRS Offers Tips to Decide