schirallicpa Posted April 1, 2017 Report Share Posted April 1, 2017 I have a couple clients that are messing around with hobby-kind-of-stuff, that they content are businesses that they are expecting to make it profitable someday. And I say "yeah right" privately, but I am wondering if someone has a form letter that I could steal. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 1, 2017 Report Share Posted April 1, 2017 You copy paste most of this as a start. https://www.irs.gov/uac/business-or-hobby-answer-has-implications-for-deductions 4 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 1, 2017 Author Report Share Posted April 1, 2017 perfect. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted April 2, 2017 Report Share Posted April 2, 2017 and this year I am warning many of mine as well as again - keep really good records as that is one of the defining circumstances of business vs hobby I tell them IRS seems to audit less but "nastier" -stricter.... and they do not want to be in that situation 1 Quote Link to comment Share on other sites More sharing options...
Randall Posted April 2, 2017 Report Share Posted April 2, 2017 What about part time farmers? They always have losses. I suppose they have a profit motive but I wonder if these are hobby losses too. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 3, 2017 Report Share Posted April 3, 2017 On 4/2/2017 at 5:05 AM, Randall said: What about part time farmers? They always have losses. I suppose they have a profit motive but I wonder if these are hobby losses too. Many of the ones I've seen do not have a profit motive. They have the equivalent of a swimming pool. They might as well build a $30,000 swimming pool, charge three kids $30 to swim and say they have a business. They just have to go to Loophole Lefty. 4 Quote Link to comment Share on other sites More sharing options...
Roberts Posted April 3, 2017 Report Share Posted April 3, 2017 I warned a client about the hobby / loss rules after several years and what we'd need to do the next year. She never came back as I'm guessing the next tax preparer had no problem reporting another loss. Sad part is that she was my most attractive client by a considerable margin. It was always a joy meeting with her! 4 Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 3, 2017 Report Share Posted April 3, 2017 20 minutes ago, Roberts said: I warned a client about the hobby / loss rules after several years and what we'd need to do the next year. She never came back as I'm guessing the next tax preparer had no problem reporting another loss. Sad part is that she was my most attractive client by a considerable margin. It was always a joy meeting with her! Yes. The other sad part is she won't be audited. It's discouraging when you lose income because you do your job correctly. 6 Quote Link to comment Share on other sites More sharing options...
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