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.		The Material Participation Test and the Forestry Industry Woodland owners who undergo IRS audits often come up against a hurdle known as the Material Participation Test. Contained in section 469 of the Tax Code, this provision disallows tax deductions on forestry losses against outside income if your participation in the venture is "passive" in nature. Read More Hobby Loss Audits in the Woodland Industry Tree farming constitutes a significant segment of the economy because timber is an essential product for houses and other buildings. Many tree growers are small businesses, and others are giant companies. For many, having your own woodland is a source of pleasure and joy. Read More Tree Farmer Faced Three Tax Court Cases Some people are unlucky enough to get audited on multiple occasions, as we see in the following case. The Tax Court ruled, for the third time, that the taxpayer's tree farm was a hobby, not a business. Austin Mitchell's family owned and operated a farm in Salem, Missouri, for over 100 years Read More Older Tax Case Still Important Today An older tax case is still important today involving Robert Montgomery, of New York, New York [Montgomery v. Commissioner, 37 BTA 232]. The taxpayer was a wealthy lawyer and accountant during the roaring '20s. His hobby was the study of trees. He collected rare varieties of evergreens. At one point he became convinced that there was a demand for rare and unusual types of evergreens, and he decided to develop a business growing and selling them. Read More