Course Description:This is a basic–level course covering Internal Revenue Code § 183. In general, the Internal Revenue Code does not allow deductions that arise from activities that are not engaged in for profit, but it does provide special “hobby loss” rules for the allowance of deductions in the case of such activities by individuals and S corporations. This course focuses on the two main issues of I.R.C § 183. First, it explores the “tier system” where deductions are allowed without regard to whether the activity is engaged in for profit. Second, the course examines the presumption that an activity is engaged in for profit if certain requirements are met. 

Course Level: Basic

Course Prerequisites: None

Delivery Method: Self-study

After completing this course you will be able to achieve the following learning objectives: 

• Be able to identify allowable deductions with respect to activities not engaged in for profit; 
• Know how to separate or aggregate the taxpayer’s activities; 
• Understand many of the key factors used to test whether an activity is engaged in for profit; 
• Know whether the taxpayer should defer the presumption that an activity is engaged in for profit; and 
• Be able to take the allowed deduction on the taxpayer’s return.

CPE

2.5

CLE

N/A