I have been running gaming events at conventions for decades now, and I was thinking I am about to start a business running events at gaming conventions for either myself or as part of a larger group. I will be generating and receiving some income or compensation (non-1099) for this.
This is not a hobby as I am actually making /spending $ on this. Can I consider this a business where I can start deducting costs for attending and hosting the events?
Starting a new business advice for running events at gaming conventions.
byu/Triceratopsrule74 intax
Posted by Triceratopsrule74
1 Comment
Yeah, you can treat it as a business, but the key thing the IRS looks at is intent to make a profit.
If you’re:
* actively trying to make money
* keeping records
* charging for events / getting compensated
* operating in a businesslike way
then it’s generally considered a business (even if you’re not profitable yet), which means you can deduct ordinary and necessary expenses — travel, booth fees, supplies, etc.
Where people get tripped up is the “hobby loss” rules. If it looks like a hobby (no real profit motive over time), deductions can get limited. A common guideline is showing profit in 3 out of 5 years, but it’s not a strict rule — more about overall facts and behavior.
Also worth noting: even if the income isn’t on a 1099, you still have to report it, and it can still be subject to self-employment tax.
If you’re trying to figure out “is this actually profitable after taxes?” or “what do I really keep after expenses + SE tax?” — that’s where it gets surprisingly hard to model. Most tools don’t make that clear unless you fully build out a return.
I ran into that same issue and built a tool called Taxalyze that estimates true net income after expenses + self-employment tax, so you can see if something like this is actually worth it financially.
Not required obviously, but helpful if you’re trying to treat it like a real business and not guess.