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So when the interim final rule is finalized, will it finally be the final rule? Or the interim/interim final rule? Or just "the rule"? Or something else?

So it should be well established by now that activity is a trade or business; but a good time to review and document the 9 factors. In regards to factor six, one of my favorites cites: "Abandoning an activity after indications that the activity will be unprofitable signifies that the taxpayer engaged in the activity for profit. Canale v. Commissioner, T.C. Memo. 1989-619" That came from Morrissey, John E., et ux. v. Comm. famous case of full time banker and weekend drag racer.

At least I think it's a problem. I've had many folks with residential rentals. These clients have a million dollar condo on Amelia Island. Just last week I found out it was being rented out like an air bnb since January 2024. Client husband had Parkinson's and actually passed this January. Wife will likely die within a month or two. But the condo was in wife's revocable trust and she was still competent early last year and decided they would no longer be able to use it so to rent it. So in ATX I listed it as vacation/short term rental which I think is correct. And the $27000+ loss is not deductible as unallowed. Is this because it is short term rental? Do the losses carry over until income offsets them? By the end of 2025 this will be in the trust and go to I don't know and almost for sure an attorney will swoop in to manage this which is fine with me. But how to explain to daughter that the loss is not deductible? Just the facts, ma'am? I've had way too many oddities this year!

Good Luck with That!!!

Zero sales and 100K loss may raise a flag. Make sure you have good documentation. If the inventory is indeed worthless, how would there be a value of donating it?

A trust does not pass through charitable contributions. The donations must be authorized by the trust instrument. The donation must be made from the trust’s gross taxable income, or traceable to gross taxable income. Therefore, if the stock was purchased with trust income it is deductible by the trust. If the stock was contributed to the trust, it is not deductible since it came out of corpus.

There is a very well-known phenomenon where an obvious solution hides - very cleverly and thoroughly - until one gives up an asks here on the forum. At which point it jumps out just as a colleague reports that hiding place/location. I think we have all been bitten over the years! Heck, I've used this to my own advantage by posting a query in the hopes of flushing out my prey.

Do you really want to face trying to respond to a letter in the summer of 2026? When all you need do now is file? And who knows how many computers will need to be pacified before you can talk to a person? Do it the hard way, and make it easy on yourself and your client.

If it were a snake I wouldn’t be posting anymore! Thank you