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taxmap/pubs/p334-037.htm#TXMP6324d6d9 Not-for-Profit Activities(p40)

Activity not for profit

If you do not carry on your business to make a profit, there is a limit on the deductions you can take. You cannot use a loss from the activity to offset other income. Activities you do as a hobby, or mainly for sport or recreation, come under this limit.

For details about not-for-profit activities, see chapter 1 in Publication 535, Business Expenses. That chapter explains how to determine whether your activity is carried on to make a profit and how to figure the amount of loss you can deduct.

Previous Page:  Publication 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Figuring Net Profit or Loss Next Page:  Publication 334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) - Self-Employment (SE) Tax Use   to find additional occurrences of topic items.