S Corporation Archives | Briefly Taxing

Debt Financing

Tribune Media Company v. Commissioner
T.C. Memo. 2021-122

On October 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Tribune Media Company v. Commissioner (T.C. Memo. 2021-122). The primary issue presented in Tribune Media Company v. Commissioner was whether the Ricketts family (a partner of the petitioner in “Chicago Baseball Holdings, LLC”) entered into a “bona fide debt” for tax purposes. (You may remember these parties from the January 2020 decision of Chicago Baseball Holdings v. Commissioner, T.C. Memo. 2020-2).

Scott St. Amand November 5, 2021

Accuracy Related Penalty

Berry v. Commissioner
T.C. Memo. 2021-52

On May 5, 2021, the Tax Court issued a Memorandum Opinion in the case of Berry v. Commissioner (T.C. Memo. 2021-52). The primary issues presented in Berry v. Commissioner were whether certain amounts characterized as gross receipts of a company should actually be other income to the petitioners, whether the company is entitled to deduct racecar expenses, and whether or not the petitioners substantiated COGS or a depreciation deduction under IRC § 167(a). Background to Berry

Scott St. Amand May 5, 2021

Distributions

Ward v. Commissioner
T.C. Memo. 2021-32

On March 15, 2021, the Tax Court issued a Memorandum Opinion in the case of Ward v. Commissioner (T.C. Memo. 2021-32). The primary issues presented in Ward were whether the petitioner properly reported income, whether the petitioner was entitled to the insolvency exception to IRC § 108 to avoid income inclusion for discharge of indebtedness income, and whether the petitioner was just completely full of shit. She was. Personal Note I sympathize with the petitioner

Scott St. Amand March 15, 2021

Funded Research

Tangel et al. v. Commissioner
T.C. Memo. 2021-1

On January 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Tangel et al. v. Commissioner (T.C. Memo. 2021-1). The issue presented in the consolidated Tangel et al. v. Commissioner cases was whether the petitioners were entitled to qualified research expense credits under IRC § 41. Background to Tangel et al. v. Commissioner The petitioners’ S corporation, Enercon, designs and produces integrated controls and switchgears for the power generation industry. It

Scott St. Amand January 11, 2021

Burden of Proof

Sage v. Commissioner (154 T.C. No. 12)

On June 2, 2020, the Tax Court issued its opinion in Sage v. Commissioner (154 T.C. No. 12). The issue presented in Sage v. Commissioner was whether the petitioner, who wholly owned an S corporation and LLC, which in turn owned (indirectly) and transferred three encumbered properties to separate liquidating trusts that disposed of the parcels with the profits going to pay off the liabilities of the S corporation and LLC, was the owner/grantor of

Scott St. Amand June 2, 2020