We hate to remove or restrict the Tax Court content that's been posted so far. So, over the next few months, the posts here will be copied to www.ustaxcourtblog.com. Eventually, this link and everything available here will be available there.
Happy Tax Season!
That's right, it's moving. The Tax Court blog will be transitioning to a new format, which will include it's own website URL: www.ustaxcourtblog.com.
Please stop by and check out the latest post: Plan Carefully to Claim Adult Children Dependents on Your Return
Sodipo v. IRS, T.C. Memo 2015-31 (Jan. 5, 2015).
On Monday the Tax Court published a case in which the pro se litigant succeeded in convincing the judge that he was a completely unreliable witness when testifying about his own case: "We found Mr. Sodipo's testimony to be in certain material respects general, conclusory, vague, uncorroborated, self-serving, and/or not credible. We shall not rely on the testimony of Mr. Sodipo to establish his position with respect to each of the issues that remain for decision." Id. at p. 11. To make matters worse, the Court found the opposite to be true with respect to the IRS's agent: "We found the testimony of the revenue agent to be trustworthy. We shall rely on that testimony as we deem appropriate." Note, Mr. Sodipo was representing himself, so there was absolutely no one on his side of the case that the Court would believe. This is never a reaction from a Tax Court judge (or any judge for that matter) one hopes to evoke.
Adeyemo v. IRS, T.C. Memo. 2014-1 (Jan. 2, 2014).
The first cases of 2015 are due out today from the Tax Court. The first case of last year, Adeyemo v. IRS, was a good reminder that "Rental activity (including rental real-estate activity) is per se passive unless the taxpayer qualifies as a real-estate professional as defined in section 469(c)(7)(B)." Id. at p. 13. For those of you who moonlight as landlords (less than 750 hours a year), be careful when claiming more deductions than earnings for your realty business activities--your passive activity losses can only be deducted to the extent of your passive activity gains. Generally, IRC Sec. 469.
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