Today in Tax Court
Come for the stories, stay for the alpha. I read recent Tax Court cases and summarize them to share thoughts on: how the IRS thinks about taxes, relevant tax law, historical court cases you should know about.
Episodes
Dec 11, 2024
Dec 11, 2024
27 min
Buy here pay here car dealership, bad accounting record access, and an aggressive IRS agent all combine for a few million dollars in tax assessed.
But the good guys get a win in this case and Aboui gets major tax relief mostly from some IRS missteps.
We talk about:
- Cohan rule (what happens when accounting is bad)
- S-Corp taxation on distributions
- Types of audit techniques the IRS will use
Dec 4, 2024
Dec 4, 2024
1 hr 20 min
On Episode 1, we get into 7 US Tax Court cases from 2024 with some solid lessons learned:
Parkway Gravel v. Commissioner - 3:07 - real estate options, C-Corps, partnership, related parties
Schnackel v. Commissioner - 16:09 - cheating husband, disallowed business deductions for cheater
Foradis (Warren) v. Commissioner - 28:15 - Real Estate Pro status blown up
Maggard v. Commissioner - 37:02 - S-Corp income allocation, embezzlement, Operating Agreement rant
Schwarz v. Commissioner - 49:09 - bad accounting, conglomerate of activities, losses disallowed as hobby
Huffman v. Commissioner - 1:01:17 - stock options subject to gift tax, personal goodwill as C-Corp play
Strom v. Commissioner - 1:12:06 - dot com bubble crash, $100MM W2, sham tax structuring