Good records can be the difference between winning and losing an IRS hobby loss audit. Learn which documents impressed the Tax Court, how successful taxpayers proved profit motive, and the records every business owner should maintain under IRC Section 183.

The IRS can deny business deductions if it determines an activity is a hobby rather than a business. Learn how taxpayers won and lost real Tax Court cases, what records impressed the court, and the mistakes that destroyed otherwise valid deductions under IRC Section 183.