As a hobby, we own a small farm that we use to stable our racehorses. In general, we use the farm as a second home, where we buy, sell, breed, and race horses. How does this work for tax purposes? (T.I.C., Poolesville, Md.)
You need your head examined. Make this hobby a second business now! Your horse hobby is about as bad as it gets for tax purposes. Here’s why.
Bad as It Gets
The law requires that you report all your hobby income, and then the law bombards your deductions to ensure that you feel the pain. Specifically, hobby deductions have an order ... Log in to view full article.