I am an employed engineer and own/run a computer repair and web development business on the side?

Posted on February 9, 2010 by admin

Is it legal for me to have my business just for the taxes breaks? Is this common practice enabling employed people to save money in taxes?

you certainly are legally able to conduct a side business along with your regular job that pays wages
if you are doing it with the intent to lose money, you are asking for trouble
that becomes a hobby in the eyes of IRS and they will disallow it entirely, you have to have the intent of making some profit

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2 Responses to I am an employed engineer and own/run a computer repair and web development business on the side?

  1. Max Hoopla says:
    February 9, 2010 at 2:08 pm

    You should have a business that shows a profit. If you don’t IRS is going to call it a hobby and throw out all your losses.
    References :

  2. tro says:
    February 9, 2010 at 2:53 pm

    you certainly are legally able to conduct a side business along with your regular job that pays wages
    if you are doing it with the intent to lose money, you are asking for trouble
    that becomes a hobby in the eyes of IRS and they will disallow it entirely, you have to have the intent of making some profit
    References :