NBAA 2011 Tactics to Avoid and Survive an IRS Audit
NBAA 2011 Tactics to Avoid and Survive an IRS Audit
NBAA 2011 Tactics to Avoid and Survive an IRS Audit
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Hobby Loss Rules<br />
Treas. Reg. §1.183-2(b)<br />
10502<br />
<strong>IRS</strong> regulations provide a list of nine fac<strong>to</strong>rs <strong>to</strong> test if <strong>an</strong><br />
activity is for profit, such as<br />
1. M<strong>an</strong>ner in which taxpayer carries on the activity<br />
2. Expertise of the taxpayer or advisors<br />
3. Time <strong><strong>an</strong>d</strong> effort expended<br />
4. Expectation of future profits<br />
5. Expectation that assets will appreciate in value<br />
<strong>IRS</strong> also permits grouping of “hobby” activity with other<br />
profitable activity<br />
Treas. Reg. § 1.469-4(d)<br />
<strong><strong>an</strong>d</strong> C<strong><strong>an</strong>d</strong>eleria vs. Unites States<br />
11003 60101
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