Page 164 - Other Income for Individuals

Activity not for profit

 You must include on your return
income from an activity from which
you don’t expect to make a profit.

 An example of this type of activity is
a hobby or a farm you operate
mostly for recreation and pleasure.
Activity not for  Enter this income on Schedule 1
profit (Form 1040), line 8. Deductions for

expenses related to the activity are
limited.
 They can’t total more than the
income you report and can be taken
only if you itemize deductions on
Schedule A (Form 1040).

 See Not-for-Profit Activities in
chapter 1 of Pub. 535 for
information on whether an activity
is considered carried on for a profit.

162