Hobby Loss Rules

Icon_Webcast
Webcast
Icon_Level
Basic
Credits
CPE Credits
1 Credits: Taxes

Course Description

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.

Learning Objectives

Upon completing this course, participants will be able to:

  • Extrapolate & 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.

Course Specifics

Course ID
WC1822298446
Revision Date
September 14, 2022
Prerequisites

None

Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02071-22-O
IRS Federal Tax Law Credits: 1
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1806
CTEC Federal Tax Law Credits: 1

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registeration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board.

Course Instructor

A.J. Reynolds, EA
A.J. Reynolds, EA

A.J. Reynolds, EA has over thirty years of experience encompassing various areas of taxation. Though his practice centers on Individual, Business, and Estate Tax preparation, A.J. focuses a portion of his practice to IRS Representation. As diverse as his specializations, A.J.’s clientele, too, ranges from average workers to Fortune 500 executives. Additionally, A.J volunteers his time with the Iowa Legal Aid’s Managing Attorney assisting in Tax Court cases and assorted income tax issues. A.J. brings his everyday “in the trenches” experience to seminars and webinars for multiple organizations to assist attendees with real issues affecting tax professionals. A.J. started his …

A.J. Reynolds, EA Read More »

Hobby Loss Rules

Expert Instructors
CPE CREDITS
1 Credits: Taxes

$49.00


Webcasts are available for viewing Monday - Saturday, 8am - 8pm ET.

Icon_Webcast
Webcast
Icon_Level
Basic
Credits
CPE Credits
1 Credits: Taxes

Course Description

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.

Learning Objectives

Upon completing this course, participants will be able to:

  • Extrapolate & 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.

Course Specifics

Course ID
WC1822298446
Revision Date
September 14, 2022
Prerequisites

None

Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-02071-22-O
IRS Federal Tax Law Credits: 1
CTEC Provider Number: 2071
CTEC Course Number: 2071-CE-1806
CTEC Federal Tax Law Credits: 1

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registeration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board.

Course Instructor

A.J. Reynolds, EA
A.J. Reynolds, EA

A.J. Reynolds, EA has over thirty years of experience encompassing various areas of taxation. Though his practice centers on Individual, Business, and Estate Tax preparation, A.J. focuses a portion of his practice to IRS Representation. As diverse as his specializations, A.J.’s clientele, too, ranges from average workers to Fortune 500 executives. Additionally, A.J volunteers his time with the Iowa Legal Aid’s Managing Attorney assisting in Tax Court cases and assorted income tax issues. A.J. brings his everyday “in the trenches” experience to seminars and webinars for multiple organizations to assist attendees with real issues affecting tax professionals. A.J. started his …

A.J. Reynolds, EA Read More »

Hobby Loss Rules

Expert Instructors
CPE CREDITS
1 Credits: Taxes

Webcasts are available for viewing Monday - Saturday, 8am - 8pm ET.

$49.00