Salto Jorge wrote:

- quote -

Profit motive.

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"Salto Jorge" <salto[at]qwest.net> wrote:

- quote -

the difference between a business and a hobby is, per the
irs' perspective, profit

if an activity shows a profit for federal income tax
purposes in at least 3 out of 5 years, the irs "presumes"
the activity is a profit activity

seems this issue has gone either way in the courts, farmers
being the example that comes to mind, with the possibility
of many loss years before a profit year

consider seeking a professional's help (e.g. cpa, etc.)

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What is the difference between a business and a hobby ?

I believe that I am working on a business to eventually
build off road vehicles.

This is what I have purchased

* Custom made parts for off road travel
* Off the shelf parts for traction devices
* Basic parts like bearings
* Permit to purchased salvaged insurance vehicles
* A few used major vehicle drive train components
that I could store.

Researched vehicle suspension systems.

Some of the components were test fitted to make sure they
are compatible.

Design

* Designed a part and had it custom machined
* Currently testing this one part.

---
In 2005, started building two differentials.

I am an engineer by education and trade .

Salto

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