Question by mwright555: Can i take deductions for a home based business beyond the revenue i brought in?
I under withheld in my regular full time job and owe alot in taxes…i have a part time home based business that i spent alot more on than i made, can i use deductions to offset the revenue as well as lower my gross income from my regular job? I read u can only use the deductions up to whatever the revenue was for the home based business?
Answer by Judy
If you are really trying to make it into a business, then yes it’s possible to take deductions for more expenses than you had revenue for the year. But if the IRS declares it a hobby, your deductions would be limited to your revenue.
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