Costello v. Comm’r: Married Couple Disallowed Various Deductions (January 25, 2021)

In Costello v. Comm’r, T.C. Memo. 2021-9, the Tax Court held disallowance of deductions for losses from farming activity sustained because losses were startup expenses for which I.R.C. sec. 195(a) prohibits a current deduction, disallowance of operating loss deduction for first rental property sustained because not held for rental, and etc.. A married couple was disallowed various deductions that were claimed on their tax returns for two tax years at issue. Taxpayer-wife was involved in a farming activity (raising chickens, growing vegetables, and raising cattle) from which she incurred seven years of losses. 

To see more details on Costello v. Comm’r:

Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s