Pennsylvania BFR Grants Taxpayer’s Income Tax Relief Petition

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision granting taxpayers petition regarding their 2022 personal income tax assessment. Taxpayers filed a joint tax return reporting net profits from their beef cow farming activity, but DOR disallowed a loss from this activity, deeming it a hobby since losses had been reported for three of the previous five years. Taxpayers contested this determination, asserting that their farming operation was a commercial enterprise conducted in a businesslike manner with separate records, positive cash flow, and the necessary knowledge and experience. The Board agreed with taxpayers, finding that they adequately established ...