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Irvine Tax Hobby Losses Attorney

A Big Tax Question: Business Expenses or Hobby Losses?

No one wants to pay more taxes than they rightfully owe, and finding solid angles to legally deduct expenses is a valid pursuit. In Southern California, it is common for tax controversy to arise over whether expenses deducted on a tax return are legitimate business expenses or an attempt to circumvent tax law and “beat the system.”

If you have received notice of an IRS or state tax audit, contact me now. This can be especially important if you anticipate some of your deductions being viewed as hobby losses, rather than business expenses. As an attorney focused exclusively on IRS and California tax problems for the past 20-plus years, I can help in this situation or consult productively with you after an audit has produced a financially painful result.

Aiming to Legitimate and Document Business Expenses

I have provided effective representation or learned through observation in cases involving:

  • Deductions of expenses for breeding, housing and maintaining race and jumping horses
  • Yachts, other boats, and properties listed with rental agencies in the effort to legitimize deductions for their maintenance, upkeep, staffing and other expenses
  • Various other pursuits that can be for profit but intensively questioned in an IRS or state tax audit

In the plainest terms, if you are audited an agent will likely seize upon certain types of expenses and classify them as hobby losses. I will look to build the best case possible for you to contest any additional tax liability if, in fact, you are treating a particular pursuit as a business with actual profit potential.

I have a resourceful approach to keeping the government honest in tax matters. You can count on me to make every attempt to make the tax code work for you — rather than against you — and obtain the best possible result while providing audit representation or pursuing an appeal or litigation on your behalf.

Call 949-474-1820  Now to Arrange a Consultation on Your Tax Challenge

Tackling any tax controversy involving business expenses vs. hobby losses requires intensive fact gathering and must begin with an informative consultation. At my Tax Litigation law offices in Irvine, California, you will be treated with respect and work only with me — not a paralegal or less qualified lawyer or assistant — from day one through resolution of your case.