How Wealthy Individuals' Hobbies and Whims Can Pay Off at Tax Time. Pt 3

In this video, we learn that wealthy and ultra-rich individuals can deduct hobbies and whimsical pastimes under the corporate umbrella, balancing off profits from other assets in their portfolio when doing taxes. Tax records show that these lost producers go beyond classic hobbies like sports and music and can encompass industries and businesses such as real estate development, biotech companies, building Titanic 2, setting up eccentric museums, and launching a car into space. The wealthy can group multiple hobbies into a holding company to avoid the legal requirements of being considered a business while still showing a noticeable sign of profit or plan within three to five years for the IRS to deem it a genuine business.
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This is a Clip from the Vlog "r/IRS Questions," which hopes to provide a steady path of information for the /r/IRS Reddit community and anyone interested in tax compliance. This channel also features the latest Internal Revenue Service news, IRS commentary, and tips from tax expert John R. Dundon.
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