In Brief Individuals often contend that their hobbies have a profit motive in order to obtain a more favorable tax outcome. But when such disputes…
Ensuring Business Activity Classification
Lessons from the Tax Court’s Decision in Whatley
In Brief Individuals often contend that their hobbies have a profit motive in order to obtain a more favorable tax outcome. But when such disputes…
“Cohan Rule” Estimates
A Useful Tool if Properly Used
In Brief If a taxpayer lacks documentation to support items on a tax return, preparers may use estimates, following an approach long known as the…
40 Years of Losses, but Still Motivated to Profit
Applying the Results of a Recent Tax Court Decision
In Brief Many taxpayers have a hobby or sideline that they pursue in the hope of earning additional income. In calculating their profits from this…