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
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
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,
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
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
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
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
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
The IRS Adjusts Reporting Thresholds—Here’s How It Affects You Tax season is here, and if you received a Form 1099-K, you’re not alone. Many taxpayers will be getting this form for the first time as part of the IRS’s effort
IRS Claims He Hid Millions to Avoid Paying Nearly $2M in Taxes Florida Businessman Faces Tax Evasion Charges A Jacksonville businessman is facing serious legal trouble after a federal grand jury indicted him for tax evasion, failure to file tax