LandsofAmerica.com
#1 in Rural Real Estate Online
Lippard Auctioneers Hall and Hall - Auction
Trip HPBA lOA Plantation Properties & Land Investments Albert Burney, Inc. Trip duPerier Texas Landman, LLC John Dixon & Associates Satellite Prolink The Land Leader Mason Morse Ranch Company US Land Office, LLC / Buckhorn Auction Services Cabelas HPBA LOA Sheridan Realty & Auction

LANDSOFAMERICA.COM BLOG

Ranch Taxes - Can a Landowner Deduct If They Don't Materially Participate?

We had a LandsofAmerica.com friend email us today about an IRS case that was taken to court over a land owner's participation coming into question regarding tax deductions:

***********************************

Losses not deductible where ranch owners didn't materially participate in ranch activities
The Tax Court disallowed losses incurred in a cattle ranch owned by taxpayers where they failed to provide evidence in support of their claim that they materially participated in the day-to-day management or operation of the ranch. In addition, the taxpayer's services performed in the management of the ranch activity were disregarded because of the presence of a full-time paid ranch manager who ran the day-to-day activities of the ranch. Iverson, TC Memo 2012-19

***********************************

You can read more about this case here: http://www.rothcpa.com/archives/007612.php

What are your thoughts on this?  Do you think it's fair to the land owner?  Give us your comments below....

back to blog listings
blog comments powered by Disqus

Share this now: