Have you ever wondered if your side hustle qualifies as a legitimate business or if the IRS sees it as just a hobby? 

In this episode, Jim Sumpter, CFP®, unpacks the surprisingly high-stakes distinction between the two. With real-life examples, Jim walks through the IRS’s 9-factor test for business classification and why failing that test could cost you big.

Whether you’re freelancing, selling handmade goods, or launching a passion project, this episode will help you understand how to treat it like a business from day one.

Here’s what you can expect from this episode:

• The 3-out-of-5-year IRS rule that could make or break your deductions
• How to pass the 9-part business test (even if your work is part-time)
• What counts as “expertise” in your field—and how to prove it
• Common mistakes that turn business deductions into audit risks
• And more!

Connect with Jim Sumpter: 

• 205-510-9074
• CMC Financial
• LinkedIn: Jim Sumpter
• LinkedIn: CMC Financial
• Facebook: CMC Financial
• Instagram: CMC Financial
• YouTube: CMC Financial