The "Business-Like" Nature of the Activity

This is perhaps the most frequently used major test. One difference between a business and a hobby is how the activity is run. If good financial records are maintained, a proper bookkeeping / record keeping system is used, and possibly a separate checking account is kept, then a better case can be made that it is a business not a hobby. Similarly, if you can prove you make reasonable attempts to market or advertise this activity to generate revenues, it supports your case.

Please contact Topolinski & Associates regarding more information on this topic.