The point was they have to be profit-seeking businesses not just hobby tax dodges.
If I spend $10K on improvements to my daily driver classic Mustangs, I shouldn't be able to deduct those expenses. If I was a business engaged in restoring them for re-sale, then those expenses should be deductible.
Grandparent's point was if husband makes a ton of money at his day job, that his wife shouldn't be able to call their hobbies of sailboating or horses or their vacation house that they rent out to friends one weekend a year as "businesses" that lose money and as a result make those expenses payable with untaxed income.
Comments
The point was they have to be profit-seeking businesses not just hobby tax dodges.
If I spend $10K on improvements to my daily driver classic Mustangs, I shouldn't be able to deduct those expenses. If I was a business engaged in restoring them for re-sale, then those expenses should be deductible.
Grandparent's point was if husband makes a ton of money at his day job, that his wife shouldn't be able to call their hobbies of sailboating or horses or their vacation house that they rent out to friends one weekend a year as "businesses" that lose money and as a result make those expenses payable with untaxed income.