By Peter J Reilly, Contributor

NFL veteran Bill Romanowski is in the news thanks to a Tax Court decision disallowing his losses from horse breeding activities.  A decision in the case of William and Jamie Pederson handed down the same day has very similar facts but is not getting as much attention since it does not involve any celebrities.   If you really think about it, it would occur to you that there must be somebody in the world who is more interested in reading horse breeding tax cases than watching football games.  That would be me, the author of this blog.  I follow Section 183 (Activities Not Entered Into For Profit), commonly referred to as “hobby loss” rules pretty closely.  Section 183 is what was used to disallow losses in both the Romanowski and Pederson cases resulting in large deficiencies – over 1 million for Romanowski and 2 million for Pederson.  There was horse breeding involved.  Nonetheless, these cases are nothing like the bulk of horse breeding cases and “hobby loss” is a total misnomer for them.  …read more
Source: FULL ARTICLE at Forbes Latest