TAX DEDUCTION QUESTION: IS IT REALLY ALIMONY?

A recent Tax Court decision serves as a reminder that couples should carefully scrutinize tax considerations in connection with a divorce. In this case, David LaPoint, a professional baseball player, entered into a postnuptial agreement (David LaPoint v. Commissioner,...

IRS ALLOWS MANUFACTURER TO DEDUCT REIMBURSEMENTS

The IRS has concluded that a manufacturer was able to deduct chargeback reimbursements it made to its wholesalers and distributors.  The IRS said the manufacturer met the “all events test” and further concluded that the recurring-item exception to the...

WITH WEDDING BELLS COME TAX DECISIONS

Wedding season is right around the corner. So, newlyweds and soon-to-be married couples need to think about their taxes – yes, really! For those who are recently married and others planning their nuptials, taxes are probably not high on your list of priorities....

THE PAINFUL TRUTH: CRIMINAL LAW ISN’T TAX LAW

Well-known criminal defense attorney F. Lee Bailey recently represented himself in a case before the Tax Court. The court concluded, in a 143-page opinion (F. Lee Bailey v. Commissioner, T.C. Memo 2012-96, April 2, 2012), that Bailey: Failed to report all of his...

CALLING PAYMENTS AN EXPENSE DOESN’T MEAN THEY ARE

A recent Tax Court decision serves as a reminder that refundable deposits are not deductible as a business expense as long as the payor has a right to recover the deposit. The case (Ernest N. Zweifel v. Commissioner, T.C. Memo 2012-93, March 28, 2012) involved a bail...