CPE Credit: 4 hours

This 4-hour course will provide tax practitioners with the necessary information for ascertaining whether an activity would qualify as a serious business based on intent and proof.

Topics Covered:

●Determining if activity is a trade or business

●General rule for trade or business expenses

●Determining whether or not an activity is engaged in for profit

●Manner in which taxpayer carries on activity

●Expertise of taxpayer or his/her advisors

●Time and effort taxpayer invests in an activity

●Presumption activity engaged in for profit

●Passive activity loss rules in general/material participation in activity

●Hobby losses and application of hobby loss rule

●Brief look at gig economy as a business venture

●Trade/business tax reporting

●Activities Not Engaged in for Profit (IRS Audit Techniques Guide)

●Net Investment Income Tax (NIIT)

Learning Objectives:

●Knowing the "art" of differentiating between a fun hobby activity and one that is a serious business venture

●Knowing what constitutes the concept of "material participation

●Preparing clients with respect to following the "nine guides" via good documentation

●Applying the concepts to taxation Rules and Regulations