Degree of Benefit of Losses

The economic status of the taxpayer enters in here. The more you have income from other sources besides the hobby type activity, and the more you benefit from the losses tax wise, the more it may be challenged. If you are driving the bulk of your income from the activity, or if the losses are not saving you much in tax, it becomes more of a moot issue to challenge.

Please contact Topolinski & Associates regarding more information on this topic.