A premium tax credit (PTC) subsidizes the cost of health insurance purchased by taxpayers through a Health Insurance Marketplace. It’s available to those with household incomes between 100% and 400% of the federal poverty line. In one case, a husband published his sister’s cause-related book but had stopped promoting it by the tax year in question. He and his wife argued that a $6,000 loss generated by the publishing business reduced their household income below the dollar-amount cap for PTC eligibility. However, the U.S. Tax Court held that the couple wasn’t entitled to deduct the loss from their income, because their business activity wasn’t “for profit.” (TC Memo 2019-125) Contact us for more information www.mjscpa.com/news/