- Maintaining accounting books and sales records
- Dependence on income as part of or primary in your livelihood
- Business acumen, either personal or from your advisory network
- Past successes in similar activities
- Appreciation of assets leading to future profits
Even if you do determine that your activity is a hobby rather than a business, definitely visit the IRS page anyway. They shed some light on allowable hobby deductions – because let’s be honest, this is the most important part of preparing your taxes!