Federal Tax Update: Hobby Losses Expenses Effectively Nondeductible

https://vimeo.com/833146017

https://www.currentfederaltaxdevelopments.com/podcasts/2023/6/4/2023-06-05-hobby-losses-expenses-effectively-nondeductible

 

This week we look at:

• Fourth Circuit does not agree with view expressed by Seventh Circuit in Menard, Inc. that C corporation reasonable compensation only depends on a reasonable return to investors
• Eleventh Circuit holds that “hobby loss” expenses under §183 are miscellaneous itemized deductions
• Elderly attorney had reasonable cause for failure to file payroll tax returns and timely pay payroll tax liabilities