Doctor’s Film Production Activity Was a Hobby

The expenses of conducting a hobby are not tax deductible. In one case, a doctor who worked 120 hours a month in the ER could not deduct the costs of his film production activity. The Tax Court said it was a hobby because he failed to run it in a business-like manner (no business plan or books and records) and given the time spent in the ER it didn’t seem possible that he spent the hours he claimed at the film activity. #IdeaoftheDay