Quote:
Originally Posted by 163Vsg
The way you have prepared the return the IRS is correct. You should file an amended return reporting the earnings on Schedule C and taking expenses up to the extent of the income. You are making the election that this is a hobby which limits the expenses to the extent of your earnings.
D. Marshall, III CPA
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I disagree with this. As a hobby, the expenses would go on his Schedule A, not Schedule C. The income is reported on page 1, Form 1040. You would only file Schedule C if the premise is the activity is for profit.