Submitted By: Yvonne
Answered: May 1, 2012 5:00 pm

I have a horse-showing business. Do I file Schedule C or F

There is no hard-and-fast rule; essentially, you can choose either one to report your income and expenses. The choice of schedule does not impact the IRS’s inquiry into whether you are running a business or a hobby (i.e., whether you have a reasonable profit motive for your activity).

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Tax Glossary

Short tax year

A tax year of less than 12 months. May occur with the startup of a business or change in accounting method.

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