tax loss
Is Election to Waive NOL Carryback Irrevocable?
You have to be careful when electing to waive the right to carry back a net operating loss. This is particularly true if there are items on your tax returns from earlier years that the IRS may eventually adjust if audited. The Bea v. Commissioner, No. …
Documenting Tax Losses for Worthless Securities
Tax losses for worthless securities are often challenged by the IRS. It particularly important to document the loss. There are several elements taxpayers have to establish to secure the benefit of tax losses for worthless securities. The recent Giun…
Court Says Partnership is Worth Less, Not Entirely Worthless
The IRS often challenges tax loss deductions. In many cases, it does so by challenging the year in which the loss is allowable. It can be difficult to determine which year the loss should be taken. When an asset is losing value over time, there is a…
Documenting Loans to Closely-Held Corporations
In Norgaard v. United States, No. 16-12107-FDS (D. Mass. 2018), the court addressed whether a personal loan made to a closely held corporation can be deducted as a bad debt when the business goes out of business. The case highlights …
The post Documenting Loans to Closely-Held Corporations appeared first on Houston Tax Attorney: Mitchell Law.
Court Says Deduction for Tax Loss Not Allowed for Worthless Debt
Tax losses for worthless debts often trigger IRS audits. On audit, it is common practice for the IRS to disallow the losses based on the debt not being worthless, the amount of the loss not being correct, and that the …..
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