Forbes has published an article, “Hobby Loss Tax Deduction Developments in 2021”, which discusses how the IRS has used Section 183 (Activities Not Engaged in for Profit) as a weapon in the war against tax shelters. The article begins as follows:
Pedants object to referring to Code Section 183 – Activities Not Engaged In For Profit – as the “hobby loss rule”, because, strictly speaking it is not just about hobbies. Besides being used against people who want to take deductions for things that they just feel like doing, Section 183 has been an IRS weapon in the war against tax shelters.
Well, the pedants scored a point in the meager number of Section 183 opinions in 2021. Nonetheless, I’ll still refer to the section as the “hobby loss rule”. And here we have the hobby loss developments for the year.
Click here to see the full article: “Hobby Loss Tax Deduction Developments in 2021”
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.