Hard Rock Case Still Up in the Air Though Some Elements Well Grounded
It is not surprising that Mr. Morton owned several entities for several different purposes- ownership of different property, management, etc. He picked one of them RWB, an S corporation, to own the jet. He provided the corporation with the funds to pay related expenses. A different corporation 510 Development Corporation hired the flight team of pilot, co-pilot and flight attendant. We don’t need to get into the details of the purposes of the various entities to frame the issue. RWB, all by itself, was not about to make a profit from owning the plane. So the IRS wants to disallow any expenses over and above some charter income. Mr. Morton maintains that the plane was being used for his overall enterprise – himself and all his various entities. The Court approves of the latter approach:
Creative College Funding Plan Fails
Originally published on Passive Activities and Other Oxymorons on May 4th, 2011. ____________________________________________________________________________ SETTY...
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.