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April 18, 2022

Tax Court holds that business owner and his S Corp could not deduct losses of related pass-through entity

In Todd Kohout and Lisa M. Kohout v. Commissioner, Dkt. No. 11958-17, the Tax Court has held that a couple that engaged in medical funding and real estate business ventures did not present sufficient evidence to reduce a wholly-owned S Corp's gross receipts for the 2013 taxable year. The court also held that the S Corp and the business owner did not have sufficient basis in a related pass-through entity to claim its losses.


Todd Kohout and Lisa M. Kohout v. Commissioner