112 \\ Is Your Business Really Legitimate? How the IRS Decides and What It Means for Deductions

In this episode, I answer a listener’s question about whether their business qualifies as “legitimate” in the eyes of the IRS—and what that actually means when it comes to tax deductions. We cover:

• The difference between active and passive income and why it matters
• How the IRS evaluates whether your business is a true business vs. a hobby
• Nine key factors the IRS looks at to determine legitimacy
• Why lending money and earning interest can still be a valid business model
• What you need to document (time spent, operations, records) to protect yourself in an audit

If you’ve ever worried about whether your business activities “count” or if you can write off your expenses, this episode gives you the clarity to avoid problems and position yourself for the deductions you’re entitled to.

 

Next Steps:

💰Pay Less in Taxes – Start Here! 💰

☎️ Are you overpaying in taxes every year?  Schedule a FREE discovery call to find out!

📧 Contact Me --> hello@phillipsbusinessgroup.com 

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