hobby loss
- A financial loss from an activity undertaken primarily for pleasure rather than earnings, which can only be written off against yearly income
- When John realized his photography passion wasn't profitable, he claimed the expenses as a hobby loss.
- Despite running her jewelry making as a business, her loss was reclassified as a hobby loss because her primary motive was enjoyment.
- After many unprofitable years, Sally realized she could record her baking expenses as a hobby loss.
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