Tax Court Case Sides With Breeder
By John Alan Cohan,
Attorney at Law
Many people decide to breed dogs and sell the litters as a business
rather than as a hobby. For most people, it is difficult to make a
profit from breeding, but that does not stop them from claiming tax
deductions, with the hopes of eventually making a profit and even
recouping losses. Some people decide to open a full service venture,
combining breeding, grooming and other services, out of their home or in
a formal pet shop...
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Creative Advertising Methods
By John
Alan Cohan,
Attorney at Law
...A
well known case that upheld the use of sporting advertising expenses is
Rodgers Dairy Co. v. Commissioner, 14 T.C. 66 (1950). The taxpayer
owned a chain of restaurants in Pittsburgh. The company purchased two
Russian wolf hounds and kept them in a kennel at the rear of the general
offices, and claimed the costs as advertising deductions...
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How
to Handle an IRS Audit
By John
Alan Cohan,
Attorney at Law
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....
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