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OBER LAW Tax

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  • hobby loss deductions
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Hobby Loss: Profit Motive

January 7, 2018 by James Oberholtzer

The fact that a taxpayer spends his personal time cultivating an activity may be indicative of profit intent.  Peacock v. Commissioner, T.C. Memo 2002-122.  Especially, where the activity in question has no substantial personal or recreational aspects.    Ibid.  Moreover, an individual’s withdrawal from another occupation to devote his time to the activity in question may also indicate a profit motive.   Reg. 1.183-2(b)(3); Burleson v. Commissioner, T.C. Memo 1983-570

Filed Under: Internal Revenue Code, IRC 162 Business Deductions, IRC 183 Hobby Loss Deductions, IRC 212 Investment Deductions Tagged With: business deductions, hobby loss deductions, horse farm, horse racing

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