JohnAlanCohan@aol.com 310.278.0203 Probate/Conservatorships IRS Audits IRS Collection IRS Appeals U.S. Tax Court IRS Criminal Investigation Tax Litigation Tax Opinion Letters Business Plans Aviation Law Tax Exempt/Nonprofit Organizations All aspects of equine and livestock law, particularly tax matters, syndications, business plans, tax opinion letters, and drafting of business documents.		Tax Deductions for Aircraft Operations A recent Tax Court case affirmed deducting the aircraft costs claimed by E.W. Richardson of Albuquerque, New Mexico, used in connection with transporting employees to sites where they were to provide management services... Read More Ordinary and Necessary Expenses in Business Use of Aircraft One of the biggest areas of tax litigation for aircraft owners involves Section 162 of the IRS Code concerning the deductibility of ordinary and necessary business expenses. An ordinary expense is one that is normally to be expected, in view of the circumstances facing the business. Necessary has been interpreted to mean appropriate and helpful in the development of the taxpayers business. And for expenses to be deductible they must be associated with the taxpayers trade or business activities rather than with hobbies. For example, if you have a hobby interest in stamp or coin collecting, using your aircraft to attend auctions would not be considered a business use of the plane... Read More How to Handle an IRS Audit Excessive business deductions by owners and breeders of horses, livestock or general farmers--or in other businesses activities--can be a red flag that triggers IRS audits. Read More Summary of Interesting Tax Cases Some accountant friends asked if I could write about cases I am familiar with that involve pilots who have either been granted or denied tax deductions in connection with various aircraft activities. Most of these involve charter and rental activities, and so I will share them with you. Mind you, these cases are all from the Tax Court or federal courts after the IRS issued a deficiency notice. Read More