The IRS doesn’t care how exciting your rodeo belt buckle is… they care whether you’re engaged in the activity with the actual intent to make a profit.If it’s a business, losses are deductible.If it’s a hobby, deductions are limited and can’t create a net loss against other income. Key Test: Can you demonstrate a profit motive? The IRS presumes a profit motive exists if you make a profit in 3 out of 5 consecutive years (or 2 out of 7 for horse-related activities, including breeding, racing, and showing — and yes, rodeo counts if horses are integral to the activity).

Missed your quarterly estimates this year? You’re not alone. The IRS underpayment charge is nondeductible, compounds daily, and snowballs fast. Writing a big check today will stop new penalty accrual from this point forward, but it won’t erase the penalties tied to the quarters you already missed.There is, however, a lawful way to make it as if you

October 2025 The One Big Beautiful Bill Act (OBBBA) didn’t just keep Opportunity Zones alive. It made the program permanent, tightened zone eligibility, and changes investor incentives starting January 1, 2027. Below is the upgraded, client-ready explainer with a now-vs-later comparison, a timeline, and the fine print sophisticated readers expect.