Navigating the Hobby Loss Rules IRC 183

Author: Susan Harper

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Is your client involved in a hobby or activity engaged in for profit? Join Susan Harper, Certified Fraud Examiner, and former IRS Internal Revenue Agent for over 30 years, as she helps you navigate IRC 183 sometimes referred to as the “hobby loss rule.” As IRC 183 limits deductions for activities not engaged in for profit, this course will address what constitutes an activity engaged in for profit and the tax implications of incorrectly treating hobby activities as activities engaged in for profit. Susan will deliver an entertaining and informative discussion to heighten your awareness to protect your clients while sharing several interesting court cases, some of which may surprise you!

Publication Date: October 2024

Topics Covered

• IRC 183 Introduction
• General Rule
• Special Considerations
• Nine Relevant Factors in Treas. Reg. 1.183(2)(b)(2)
• Importance of IRS Interview & Tour of Business
• Court Cases
• Resources

Learning Objectives

• Identify the purpose and history of IRC 183
• Identify how to provide insight into the examination process of the “hobby loss rules”
• Identify how to digest the general rule and deductions allowable per IRC 183
• Identify how to discuss the presumptions and safe harbors involving IRC 183
• Identify the nine relevant factors per the Treasury Regulations
• Identify how to anticipate potential examination issues of the IRS auditor
• Identify how to dissect various court cases ruled activities engaged in for profit, as well as hobbies

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None