A number of taxpayers who have significant income from other sources reduce their taxable income by reporting losses from activities that may or may not be engaged in for profit. It is up to the IRS examiners to make a factual determination whether an activity is engaged in for profit. This includes Schedules C, E, and F. Taxpayers bear the burden of proving that they engaged in the activity with an actual and honest objective of realizing a profit. You will not want to miss this class as it will cover the techniques that examiners use during an audit.