Hobby Loss Rules FLEXCAST

Overview

Millions of people enjoy hobbies that are also a source of income. From catering to baking cupcakes, crafting homemade jewelry to wind chimes – no matter what a person’s passion, we as tax professionals must determine if our client has a business or Hobby. The rules for how to report the income and expenses depend on whether the activity is a hobby or business. Sometimes the tax law is so obvious that one need not be an expert to conclude the result of a case. But at times we allow ourselves to be so obscured in details that we can miss the obvious, even in the world of complicated tax law. This course provides a useful overview of determining if a business venture is a hobby subject to limitations on deductions or if the business venture is truly a trade or business and deductions are fully allowed under IRC Section 162.

Highlights

Business or Hobby. Hobby Expenses. Nine Relevant Factors.

Prerequisites

None.

Designed For

CPAs and other tax professionals.

Objectives

Extrapolate and Critique the Nine Relevant Factors. Examine what is a “Trade or Business.” Interpret the presumption that an activity is engaged for profit. Explore relevant case law. Provide and evaluate Client Questionnaire on Trade or Business Factors Regarding Profit Motive. Formulate a plan on how to prove an activity is a trade or business when IRS says otherwise.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.