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    Hobby Losses: how do you prove profit motive?

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    If not meeting the income test, how do you prove profit motive?

    © BrainMass Inc. brainmass.com October 1, 2020, 11:15 pm ad1c9bdddf

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    A profit motive has to do with intent and can be justified by other actions including:

    (1) Manner in which the taxpayer carries on the activity.
    (2) The expertise of the taxpayer or his advisors
    (3) The time and effort expended by the taxpayer in carrying on the activity.

    And other factors which may ...

    Solution Summary

    The 214 word solution provides a thoughtful discussion to explain the subjectiveness of the application of Section 183 for hobby losses.