Joy Ford May Sing The Tax Court Blues
Bell Cove was not a moneymaker for Ms. Ford. Quite the opposite – she posted over $200,000 in losses over that three year period. As you might expect, since you are reading about this on my blog rather than Music Row, the IRS disallowed the losses.
Loophole May Allow Highly Paid Professionals To Take Advantage Of 20% Deduction
The idealism around the worker-owner movement is pretty inspiring and has a deep history. It makes me almost feel like the loophole is like the Ring of Power hidden in the Shire and that I am kind of like Saruman unleashing a band of bad guys into a kindly sector of the world. I actually would feel pretty good, if there was a technical correction that fixed this, but always remember Reilly’s First Law of Tax Planning – It is what it is. Deal with it. I would hope the deduction stays intact for the bicycle mechanics, house cleaners and artisan bakers among others, who might only be getting a few hundred bucks out of it. I’m afraid that a lot of them will miss it, because it is kind of obscure. I’ll try to remember to post a reminder.
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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.