June 8, 2008 by admin

1104. Can an illegal activity be a trade or business?

The illegality of an activity does not prevent it from being a trade or business. For example, professional gamblers, bookies, etc. may be engaged in a trade or business. If you are in this category, you are considered self-employed and are required to report your income and pay self-employment taxes.

Last Revised: March, 2001