Earlier this week the IRS discussed the factors they look at to see whether a business has a real profit objective under the "hobby loss" rules. As a public service, the Tax Update reveals the secret factors that tell the IRS there REALLY is no profit objective.
* You tell the IRS that you need your Learjet to get from West Des Moines to Altoona for your business of slot machine gambling.
* You hold "board meetings" for your Mary Kay sole proprietorship in Aruba and Switzerland.
* "Financial records? We don't need no stinking financial records."
* Your business is a stand that sells celery sticks, carrots and "meat is murder" t-shirts at the Iowa State Fair.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to