2023-06-05 Hobby Losses Expenses Effectively Nondeductible
This week we look at:
- Fourth Circuit does not agree with view expressed by Seventh Circuit in Menard, Inc. that C corporation reasonable compensation only depends on a reasonable return to investors
- Eleventh Circuit holds that “hobby loss” expenses under §183 are miscellaneous itemized deductions
- Elderly attorney had reasonable cause for failure to file payroll tax returns and timely pay payroll tax liabilities
