My colleague Peter Reilly, CPA, has strongly urged that Section 183 cases can be won. I was skeptical, but there are exceptions.
Here’s one, WP Realty, LP, Olympia Realty, Inc., Tax Matters Partner, 2019 T. C. Memo. 120, filed 9/16/19. It’s the story of Corbin Robertson, Texas high-roller, who decided to provide golfing for inner-city kids via a 501(c)(3), and wound up with a world-class golf course, with seven figure losses to offset his nine-figure income.
He skates through the “goofy regulation,” because Corb had good recordkeeping, got his golf course designed by a “brand name” (Judge Kerrigan’s words, at p. 40) designer, turned his out-of-the-way golf course into a destination, hosted high-profile golf tournaments, kept the kids’ golf charity well-shielded from the business, at least well enough to beat IRS’ “only a hobby” argument, and did make a profit once.
The bottom line? Have enough money to hire a strong staff, use “brand name” contractors, keep the children away, and keep those records current.
[…] Taishoff has Mr. Reilly, One For You, which accounts for me getting to this case sooner than I otherwise would […]
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[…] Taishoff has Mr. Reilly, One For You, which accounts for me getting to this case sooner than I otherwise would […]
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[…] Taishoff has Mr. Reilly, One For You, which accounts for me getting to this case sooner than I otherwise would […]
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[…] Taishoff has Mr. Reilly, One For You, which accounts for me getting to this case sooner than I otherwise would […]
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