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Case Summaries

Case Summaries S Corporations

A Texas landfill goes to Tax Court

Landfill photo by Celestine Ngulube via Unsplash.

A Texas couple recently won a novel U.S. Tax Court case involving tax deductions for landfills.

The married couple operate a landfill outside of Austin using an S corporation which they co-own with relatives.

The IRS disallowed deductions that the couple’s company took for future cleanup costs because the company is a cash-method taxpayer and the IRS contends that the deductions are only available to accrual-method taxpayers.

The tax court disagreed. Continue reading “A Texas landfill goes to Tax Court” »

Case Summaries State Income Tax

How a dog helped a new Dallasite win his tax case

Dog photo by Brandon Day via Unsplash.

I have a new Texas tax article over at The Dallas Morning News — it’s about a New York tax appeal case involving Match Group CEO Gregory Blatt.

Blatt moved to Dallas from NYC back in 2009 after becoming the CEO of Dallas-based dating siteย Prior to that, he ran the legal department of Match’s parent company, IAC.

Blatt wasn’t so sure that Dallas would suit his lifestyle, so he negotiated this interesting arrangement where he would retain some of his IAC titles while essentially testing-out the Match position. Continue reading “How a dog helped a new Dallasite win his tax case” »

Case Summaries Federal Income Tax

Tax Deductions at the Ranch

Photo of a night sky at a ranch by John Moore via Unsplash

A Virginia woman is not responsible for a $30,467 tax deficiency assessed by the IRS according to a U.S. Tax Court Opinion summary opinion filed on Thursday.

The case involves a Texas couple who moved to Purcellville, Virginia (an ex-urb of D.C.) in 2005 and built a home on a 5.5 acre plot of land.

In addition to building their house, the couple also built a “run-in shed” for their four Peruvian Paso horses, which they brought from Texas.

In 2008, the husband bought a 14.8-acre plot of land next to the marital property, which he wanted to use for cattle ranching. Then, in 2011, he switched to a part-time work schedule so he could pursue his cattle ranching activity. Continue reading “Tax Deductions at the Ranch” »