Tax Court Denies More Than $456,000 in Horse Business Losses: What Schumacher v. Commissioner Means for Hobby Loss Deductions
The Tax Court denied more than $456,000 in horse business losses after finding that weak financial records, commingled funds, no credible profit plan, and eighteen years of losses outweighed the taxpayers’ expertise and substantial effort. Schumacher v. Commissioner shows what business owners must document to protect deductions under Section 183.
Mortgage Interest Deduction Rules: Lessons From a Recent Tax Court Case
A recent Tax Court case highlights the strict requirements for claiming the mortgage interest deduction. Learn when mortgage interest is deductible, why documentation matters, and how homeowners can avoid costly IRS challenges.