Whether a revenue-generating activity constitutes a trade or business is usually straightforward — until it isn’t. The most common confusion on this issue occurs around hobbies that generate revenue and investments that contain a degree of personal involvement. Many of these are difficult to distinguish from trades or businesses. For these activities, having the status of a trade or business can allow certain tax deductions, dictate filing methods and responsibilities, and impose additional taxes.
- Sections 1202, 1244 & Installment Sales On-Demand
- Sections 338(h)(10), 336(e), & S Corporations On-Demand
- Is it a trade or business? Or a hobby or investment?
- Related Party Notes and Transactions: Section 267, Imputed Interest, Disallowed Losses, and Like-Kind Exchanges
- Important Filing Deadline Information for PFC Clients