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 [...]
The following tale is the first in a two part series relating to a couple of recent decisions from the United States Tax Court. Both decisions center around the often-litigated topic of a taxpayer’s profit-motive and whether those taxpayers should have been the allowed the losses stemming from their breeding businesses. On December 21, 2021, [...]
A recent U.S. Tax Court decision in Barker v. Comm’r of Internal Revenue, T.C. Memo. 2018-67 exemplified the notion that a taxpayer could win a significant tax battle, but still lose the tax war. Cecile Barker was a successful aerospace engineer who also operated a music production/promotion company called SoBe. Cecile’s son was among the [...]