Recent Articles
Pennsylvania Supreme Court to Rule on Pittsburgh’s ‘Jock Tax’
The Decision Could Reshape City Finances and Impact Professional Athletes and Performers The Pennsylvania Supreme Court is set to hear a case challenging Pittsburgh’s “jock tax”, a 3% levy imposed on non-resident athletes and entertainers who perform in the city’s...
Supreme Court Ruling Ends Tax-Free Business Transfers
Closely Held Companies Face New Tax Burdens After Connelly v. United States The Supreme Court’s recent ruling in Connelly v. United States has reshaped the way closely held businesses handle ownership transfers after a shareholder’s death. This under-the-radar decision has...
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...