Written by Reed Tinsley, CPA |
August 22, 2008
Many physicians have sideline business activities but are these activities true active trade or businesses? The IRS has posted a factsheet to its website at http://www.irs.gov/irs/article/0,,id=186056,00.html that provides guidelines for determining when an activity is a hobby, instead of an active trade or business. Under IRC Sec. 183 , activities that are deemed to be hobbies are limited on the amount of deductions that may be claimed. In addition, the deductions are itemized deductions subject to the 2% AGI limitations.
About the Author
Reed Tinsley CPA
This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on
accounting & tax,
practice management, and
financial planning.
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