Multiple businesses can create a Section 199A problem that is easy to miss. When income, wages, property, and losses sit in different entities, calculating each business separately can produce a very different result from a permitted aggregation.
If your passion project earns income, from dog breeding to photography, the IRS may classify it as a hobby, limiting your deductions. Here’s how to protect your deductions and prove your activity qualifies as a legitimate business under the 2025 OBBBA rules.
