On December 16, 2021, the United States Tax Court issued a memorandum opinion in the case of Skolnick v. Commissioner (see Docket Nos. 24649-16, 24650-16, 24980-16), which was related to the deduction of business expenses for an animal breeding operation. This opinion was the second of two recently issued on the matter. You can find [...]
For many taxpayers with multiple active business interests, the material participation test can be a significant tax trap. If the elements of that test are not met, the impact could be that the taxpayer is limited in how the income/loss from that business is recognized on their personal tax return. A recent decision in the [...]