Latest on hobby vrs business...

A long series of annual losses doesn’t always mean an activity is a hobby, the Tax Court says, overruling IRS. A teacher who also coached track set up a business to give private coaching to young athletes. Although he had a string of annual losses, he acted in a businesslike manner, attending clinics, going to meets and camps to get the word out, and keeping a separate bank account. He consulted an expert on how best to promote his business and implemented the advice he received. It also helped that after the years at issue in this case, one of his athletes blossomed and turned pro, and his coaching income rose enough so the business was profitable. He can deduct his coaching losses on Schedule C.