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By on December 28, 2021
The U.S. Tax Court recently issued two memorandum opinions regarding animal breeding activities and whether the taxpayers at issue could deduct expenses in excess of income from the activity. In Skolnick v. Commissioner, the Tax Court found that a pair of horse breeders were not engaged in the activity for profit, and thus the deductions were limited by IRC Section 183(b). In Huff v. Commissioner, the Tax Court found that a miniature-donkey-breeder venture was engaged in for profit, and therefore expenses in excess of income were allowable deductions under Section 162(a).
End-of-Year Change to the Employee Retention Credit Waiting to Snag Some Employers with Penalties
By on Decenber 20, 2021
The IRS recently issued Notice 2021-65, offering guidance to employer-taxpayers after the Infrastructure Investment and Jobs Act ("Infrastructure Act") ended the employee retention credit for wages paid by most employers during the fourth quarter of 2021. The Notice also describes circumstances where certain employers may have to repay advance payments of the employee retention credit or be subject to penalties.