IRS Form: AICPA Comments on Excess Business Loss Form (IRC §461)

AICPA publishes recommendation to update the definition of a “trade or business” on the 2018 Instructions for Form 461, Limitation on Business Losses. The AICPA recommends changing the language to note that the activity should be conducted with continuity and regularity rather than the taxpayer being involved in the activity with continuity and regularity. The AICPA notes that the taxpayer’s involvement is not a tests for a trade or business and explains how that affects passive investors and sole proprietors. [AICPA Comments on IRS Form 461]

Reference:
View Source Document.