Tax Question – Copy of Tax Return

Question: Our attorney requested a copy of a tax return related to a lawsuit.  It has been three months now with no response from the IRS.  The trial is around the corner and the attorney seems confused as to why the IRS has not responded.  I did know if this was normal for the IRS, if there was special procedures to obtain such paperwork which the attorney is not aware of, or something else you might know of that we haven’t even thought of yet.  Continue reading…


“For-Profit” Business or Hobby, Analysis of Factors 5 – 9

If the business does make a profit three out of five consecutive years (two out of seven for training, showing, breeding, or racing horses), then the facts and circumstances will be evaluated to determine if the business is “For-Profit” or hobby.  There are 9 factors that are evaluated.  In the previous blog we evaluated Factors 1 – 4 of the 9 factors.  This blog reviews Factors 5 – 9.
Continue reading…


For-Profit Business or Hobby, Facts and Circumstances

Generally, a business is considered “For Profit” if the business generates a profit in at least three out of five consecutive years.  For training, showing, breeding, or racing horses, then the business needs to generate a profit for two out of seven years.  What if the business does not meet this test?
Continue reading…