Hobby Loss Rules FLEXCAST

Overview

This course is designed for tax professionals grappling with the often challenging distinction between hobbies and businesses in tax reporting. Understanding this distinction is not just about applying tax laws; it’s about delving into the intricacies of individual cases where passions intersect with profit. This course offers an in-depth analysis of the criteria for defining a trade or business and the factors determining whether an activity is pursued for profit, as per IRC Section 162. Participants will gain the ability to critically assess the nine relevant factors that define a hobby or business and explore how these factors apply in various scenarios. The course includes an examination of relevant case law, providing a practical perspective on how these determinations are made in real-life situations. Additionally, participants will learn how to effectively use and evaluate client questionnaires to ascertain profit motives, equipping them with the tools to advise clients accurately. By the end of this course, participants will not only understand the nuances of distinguishing between a hobby and a business but also be prepared to defend their position in cases where the IRS challenges the classification of an activity.

Highlights

Business or hobby. Hobby expenses. Nine relevant factors.

Prerequisites

None.

Designed For

CPAs and tax professionals.

Objectives

Extrapolate and critique the nine relevant factors. Examine what a trade or business is. 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.