Hobby Losses in S Corporation

Your post is ridiculous. Of course this form can be used. The IRS would never allege any sort of claim that an 1120S was signed under “false premises” if the loss weren’t claimed on the 1040 because it was a hobby loss.

No, it's your post that is ridiculous. You would advise a client to file an 1120-S taking one position under penalties of perjury and then to disagree with himself on that same position on Form 8082 under penalties of perjury in order to continue to work with a tax preparer he disagrees with.

Is that "three-year income" test applied to the gross income of each of the three years, or to the gross income of three years added together? Go back and read the section again: "If the gross income derived from an activity for 3 or more of the taxable years in the period of 5 consecutive taxable years which ends with the taxable year exceeds the deductions attributable to such activity..." Really not clear, huh?
. That's from Harry Boscoe, above.

Pretty soon, somebody's gonna ask if we can choose between using the Julian and the Gregorian calendars for this stuff.. That's from his good buddy from the same town, in another thread somewhere.

Yeah, this same "ten-square-mile" - as some have described it - town. The people who describe it that way need a spanking. Anyone who fails to distinguish between "ten-square-miles" and "ten-miles-square" and then includes that failure in something they write and publish should be spanked, publicly. Or should that be "publically"?

Is it only that I hear "Dishtrict of Columbia" whenever the Mayor refers to her my fine city by its name, or does she really pronounce the word "district" that way?

Thanks for your input and suggestions. I am in contact with the S Corp tax return preparer and have access to past tax returns. I still believe the activity is a hobby loss and will discuss with her and client. There is a lot to consider. I may be back with more questions before a final recommendation. Thanks again.