Florida Man Runs Afoul Of IRS Basis Rules For S Corporations

You will rarely see a better illustration of Reilly's Fourth Law of Tax Planning, than the Tax Court's decision yesterday in the case of William and Amaryllis Tinsley.  The Fourth Law by the way is - Execution isn't everything but it's a lot. The Tinsleys were hoping to post a good sized negative number ($110,480) from their S Corporation (Command Computers of West Florida Inc) on their individual return.  The loss was disallowed because of lack of basis. The Tinselys thought they had solved the problem of basis.  Maybe they had in some sense, but not to the satisfaction of the Tax Court.

Read More: https://www.forbes.com/sites/peterjreilly/2017/03/01/florida-man-runs-afoul-of-irs-basis-rules-for-s-corporations/#3370bb6a795e

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