Recent Articles
Tax Court Rules on Rental Activity Losses
Why Proving Real Estate Professional Status Can Be Challenging Many investors use rental property losses to offset taxable income. However, qualifying as a real estate professional—which allows full deductions of rental losses—requires meeting strict IRS rules. A new case, Foradis,...
Tax Court Rules Against a Family Limited Partnership (FLP)
Estate Tax Reduction Strategy Fails IRS Scrutiny Family Limited Partnerships (FLPs) can be powerful estate planning tools. They allow business owners to transfer wealth to the next generation while retaining control. However, a new Tax Court case, Estate of Fields...
Tax Court Delivers Mixed News on Charitable Appraisals
A Costly Lesson in Valuing Conservation Easements Donating a conservation easement can lead to significant tax deductions for individuals and businesses. However, a new Tax Court case, Savannah Shoals, LLC, Green Creek Resources, LLC (TC Memo 2024-35, 3/26/24), highlights the...
Tax Court Sides with IRS: Businesses Must Prove Expense Deductions
Lack of Proper Documentation Leads to Denied Tax Deductions Self-employed individuals can deduct “ordinary and necessary” business expenses, just like large corporations. However, they must follow strict substantiation rules to claim these deductions. In a recent case—Kalk, TC Memo 2024-82...
Shohei Ohtani’s Ex-Interpreter Sentenced to 57 Months for $17M Theft
Ippei Mizuhara Ordered to Repay Millions After Shocking Fraud Shohei Ohtani’s former interpreter, Ippei Mizuhara, has been sentenced to 57 months in federal prison for stealing nearly $17 million from the Los Angeles Dodgers superstar. The stolen money funded Mizuhara’s...
Tax Court Rules: No Deductions for Abandoned Start-Up Costs
When Does a Business Officially Start? The IRS Weighs In Starting a business comes with many expenses, but not all of them are immediately deductible. According to a recent Tax Court ruling (Eason, TC Summ. Op. 2024-17, 8/13/24), taxpayers cannot...