Larry Rosenblum, MBA, Enrolled Agent and Equine Accountant is a Hobby loss specialist with over thirty years of experience.

You may think you can face the IRS alone but every year we represent many clients who thought the same thing. Why walk into an IRS AUDIT unprepared and uninformed? Why not audit proof your business? The answer isn’t you can’t afford a hobby loss expert. The answer is you can’t afford not to have us on your team.


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 What is a Hobby Loss?

 

A hobby loss is defined as a loss that is determined by the Internal Revenue Service to be the result of an activity not entered into for profit. The effect of a determination that your business is a hobby is that the loss cannot be deducted from income. This effect is usually devastating It uaually results in .the taxpayer owing taxes, penalties and interest for three years WITH liabilities reaching $50,000, $100,000 and above. We routinely handle cases involving close to 7 figures.

The IRS likes to argue that certain businesses are actually a hobby because many people lose money in them due to its high risk. The rules say you have to gain a profit in two out of five to seven years (if it is a farming related activity) to be called a business. But what if you don’t? We have won many cases where there were not two profitable years.  Let us “risk assess” your operation and advise you how to avoid being labeled a hobby by the Internal Revenue Service. There are very specific steps you need to take today to avoid many thousands of dollars of potential tax liabilities at a later date. Let us guide you thru this complex maze of tax law and court cases so your business stands the test of tax law.

If you have Any questions feel free to contact us at 844-777-7200.

Is your horse racing venture a for-profit endeavor? Equine activities are the most common source of hobby loss cases in our office. Any owner who has had five or more years of losses in the last seven years is in danger of being challenged by the government on the Federal level and State level. There are several preventative measures that can be taken to avoid having your equine activity running afoul of IRS regulations. Please contact our office for expert advice in this regard.
Is your auto racing business a means of income or a perpetual loss? The Hobby Loss issue relating to auto racing is a common case for the government when looking at different Hobby Loss issues. When it comes to auto racing, it can be easily determined whether the owner of the vehicles made profit or they did not make profit. There are many ways to prevent an audit from the government.
Is your aircraft business making you money? If it is not, the Aviation Hobby Loss issue is a common one for the government when looking at various audit issues. It cannot be easily determined whether your aircraft is a hobby or a business and you need an expert such as us to help the agent realize it is a business even if it is not making you money at the present moment. There are various preventative measures that can be taken to make sure the IRS does not come after you.
Is the boating industry your job and not your hobby? Boats and yachts are a common case for the government to attack when looking at audit issues. If you're in the boating industry, and it is your main source of income, you are usually safe from a hobby loss assertion. However what if you have a loss? The IRS likely will eventually choose to audit you. However there are several ways to prevent these instances, and keep the IRS away from you. Call us for a free consultation.
Questions About Hobby Losses
1. Does the taxpayer depend on income from the activity?

2.Does the business have a written business plan?

3.Has the taxpayer changed methods of operation to improve profitability?
Larry Rosenblum IRS Agent and Manager - Your Answer For Solving Equine Related Tax Problems and Hobby Loss

Let my 30 years of experience work for you - Call us before the IRS calls you!

Our address:
  • Mailing address: P.O. 3 Dublin,
    PA 18917
    Phone 888-338-2999, 844-777-7200
    Fax 877-829-2230

Contact details:
Phone number:
  • 1-844-777-7200