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Photographer Inspired By Ansel Adams Does Not Fare Well Against IRS In Tax Court

Photographer Inspired By Ansel Adams Does Not Fare Well Against IRS In Tax Court

Regardless, the S Corp had passed through nearly $100,000 in loss to Mr. Kantchev in 2007, most of which was carried forward into 2008 along with another nearly $10,000 loss.  The IRS did not attack the losses with Section 183 (hobby loss).  They had a more subtle trap.  Generally, when you make a film you are supposed to capitalize your costs and recover them through depreciation deductions.

Now it happened that until this year producers could elect to deduct production costs.  There are limits and qualifications, but it is pretty clear that “Tiger Lily” met those and that Victory could have elected to expense the costs.  Only the corporation didn’t.  Mr. Kantchev argued that the corporation effectively made the election by deducting the costs.  It is worth noting that there are some elections that you make that way.  The election under Section 181 – Treatment of certain qualified film and television productions – just does not happen to be one of them.

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National Organization For Marriage Denied Attorney Fees In IRS Lawsuit

National Organization For Marriage Denied Attorney Fees In IRS Lawsuit

The NOM disclosure issue wove its way into the IRS scandal narrative.  The core scandal is the delay and intrusive questions in processing the exemption applications of Tea Party and similar groups.  Earlier this week Paul Caron on The IRS Scandal, Day 943 noted that Brian Leiter of the University of Chicago Law School had queried his readers “Has there really been an IRS scandal going for nearly three years?” Professor Caron maintains that he will keep with the coverage as long as there is something out there.  He did indicate that there is not much in the queue right now, so there is some chance the series might go dark at least for a while.

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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.