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.		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 Activity for Profit Measured by Time Spent An area of concern in IRS audits of farming, livestock and horse activities is the amount of time expended by the taxpayer in the activity. Read More Importance of Tax Opinion Letters for Livestock Owners Livestock businesses should be operated basically in the same way as other business, utilizing business principles and judgment in decision-making, and maintaining appropriate books and records. For many ranchers, this activity is a second venture, entered into to supplement retirement income or with the expectation that assets will appreciate in value and later be sold, together with the ranch, at a profit. Read More Operating in a Businesslike Manner In hobby loss audits, the IRS sometimes views horse activities as a means of generating tax losses, rather than as a profit-oriented venture. The IRS gives the greatest problems to individuals who have had a significant history of losses that they use to write off other income. Read More Tax Tips For Livestock Owners Many people who own livestock farms are full-time professionals in non-farming fields--doctors, for instance. The IRS often enough will assess deficiencies against these individuals based on the idea that the activity is simply a means of generating tax write-offs. Read More What is a Tax Opinion Letter? An area of concern for people in the horse, livestock and farming industries--among many other fields--is how to withstand IRS scrutiny in the event of an audit. Read More The Definition of "Profit". Many years ago a federal court defined the word "profit" as "the advantage or gain resulting from the investment of capital, or the acquisition of money beyond the amount expended; a pecuniary gain." The meaning of "profit" is important not only in computing tax liability, but in determining a taxpayer's motive for entering into a transaction, or establishing a livestock or other farming business. Read More