Wierd court case
09-27-2005, 10:38 PM
#1
Racer
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09-27-2005, 10:47 PM
#2
Three Wheelin'
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Um....?
"The Porsche 928 S4 engine is a V-8 engine, while other engines Porsche produces are V-6."
Page 3
Ekman, et al. v. Commissioner
No. 98-1576
It looks like he didn't win his case though. Deductions are allowed on research or experimentation but not "capital" expenditures.
"The Porsche 928 S4 engine is a V-8 engine, while other engines Porsche produces are V-6."
Page 3
Ekman, et al. v. Commissioner
No. 98-1576
It looks like he didn't win his case though. Deductions are allowed on research or experimentation but not "capital" expenditures.
09-28-2005, 09:34 AM
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I love the smell of a good tax court case early in the morning. It smells like..........victory. Good reading. As a CPA, I can appreciate the guys attempt, however feebly exectuted, to deduct his race engine development. As the old saying goes, "pigs get fat, hogs get slaughtered"
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09-28-2005, 03:12 PM
#9
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"The Commissioner's deficiency determinations are presumed correct and
the taxpayer bears the burden of proving otherwise. "
Hard to believe we live in the USA. Maybe we should call it the USIRS.
Doc
the taxpayer bears the burden of proving otherwise. "
Hard to believe we live in the USA. Maybe we should call it the USIRS.
Doc
09-28-2005, 08:22 PM
#10
Chronic Tool Dropper
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This has been discussed before here. Without getting into tax law (married to an expert on that...), it came down to whether this was a hobby or a business, and whether there was a profit motive for a particular action. The audit and hearings guys felt that it didn't quite make it to the business category, so no deductions for development of the engine for a car that was driven. My guess is that engine development done on a dyno would have passed muster, especially if that development could be linked to products or services that could be related to that development.
But that's just a guess.
But that's just a guess.
09-28-2005, 09:58 PM
#11
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Yes, that is our Lucky hard at work to recover R&D money from before DEVEK was in business. At the time, it was a hobby, and as an interested party, Lucky took on some development work with Bob DeVore ... cams and 6 CWT cranks, etc.
I think we have made up for it
Marc
I think we have made up for it
Marc
