Tax News Update    Email this document    Print this document  

April 18, 2022
2022-0637

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.

———————————————
ATTACHMENT

Todd Kohout and Lisa M. Kohout v. Commissioner

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement