Judge Thomas Hardiman of the Third Circuit wrote approvingly of Tax Court Judge Albert “Scholar Al” Lauber’s opinion in the case of Mitchel Skolnick. It is a large dollar hobby loss opinion – horses of courses – that may have implications in the future. In approving the IRS denial of the over $3,000.000 in losses on Bluestone Farms LLC (85% owned by Skolnick), Judge Lauber indicated that he had weighed the sixth of nine regulatory factors – history of income and losses – very heavily in making his determination that Bluestone was not an activity carried on with an intent to make a profit. From 1998 to 2013, losses had totaled over $11,000,000.
Background
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