Attorney-at-Law

“BRASS” ISN’T THE WORD

In Uncategorized on 03/01/2017 at 17:03

I must leave discerning the meaning of the title hereinabove set forth to the reader’s imagination. I trust the reader will experience little difficulty thereat.

It’s Joe Alfred Izen, Jr., who has appeared before in this my blog. See my blogposts “The $2000 Misunderstanding,” 6/12/12 and “Try, Try Again,” 1/16/13.

Well, as I said in the second of those two blogposts “Joey A is quite a card.”

And now he’s made the Big Time, with his own full-dress T. C., Joe Alfred Izen, Jr., 148 T. C. 5, filed 3/1/17.

Joey A wants a $338K deduction for his half-share in a 1969 model Hawker-Siddeley-DH-125A-400. This is an ancient business jet.

He didn’t bother to take the deduction for the year he made it, taking the standard deduction instead. I assume Joey A is self-employed, and playing the Sched C-standard deduction gambit, loading the Sched C and foregoing any Sched A. And the audit and SNOD for the year at issue dealt only with Sched C and Sched E.

Joey A petitions timely, and moves to amend, four years after he allegedly gave away the airplane to the Houston Aeronautical Heritage Society at HOU (a field I know well), to claim the deduction.

Then Joey A moves for partial summary J.

Well, no summary J, because there’s a couple questions (hi, Judge Holmes) of fact, like contemporaneous acknowledgment, properly filled out Form 8283 and FMV of Joey’s half.

So Joey A sends in a 1040X, six (count ‘em, six) years after the alleged donation.

“On this return he claimed for the first time a deduction of $338,080 for his alleged contribution to the Society of a 50% interest in the aircraft.  Petitioner included with this amended return:  (1) an acknowledgment letter addressed to Philippe Tanguy [the GP of the co-owning LLP], dated December 30, 2010, and signed by Drew Coats as president of the Society; (2) a Form 8283 executed by Amy Rogers, managing director of the Society, and dated [six years after the alleged donation]; (3) a copy of an ‘Aircraft Donation Agreement’ allegedly executed [12/31 in year of alleged donation], by Drew Coats as president of the Society but bearing no other signatures; and (4) an appraisal by Winston McKenzie dated [next year after alleged donation], opining that the fair market value of petitioner’s 50% interest in the aircraft, as of December 30, 2010, was $338,080.” 148 T. C. 5, at pp. 5-6.

The IRS riposte does not convulse me with shock.

“Respondent represents that the IRS ‘will not process petitioner’s amended 2010 tax return.’” 148 T. C. 5, at p. 6.

Joey A again wants summary J, but there is the question how the half-share of the airplane that he bought three years before the alleged donation for $21K became worth $338K in the interim.

As for the contemporaneous written acknowledgment, check out the special rules for donations of used vehicles, including aircraft. Joey A never got a 1098-C, the magic form, apparently because the Houston Aeronauts never prepared one, filed one or sent Joey A Part B thereof.

Neither did the Houston Aeronauts keep the records required by Section 170(f)(12), and no document proffered by Joey A comes close to being contemporaneous. Joey A claims that, when integrated, they fill the bill.

Judge Lauber does a major deconstruction of Joey A’s proposed integration of documents. For a proper integration, see my blogpost “A Thing of Beauty” – Redivivus,”10/25/12.

Ya gotta love the guy. “Brass” definitely isn’t the word.

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