“TRADE OR BUSINESS”

By , August 17, 2018 10:19 am

A key issue in any Section 199A analysis for clients is whether their business is a “trade or business” under IRC section 162.  The Tax Court case cited below contains a useful discussion about the procedural issues courts apply in addressing this issue, and the case holds that merely preparing to start a new business does not constitute a trade or business under Section 162.

Here’s the cite:

HOMAYOUN SAMADI AND SARABANO SAMADI,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent
UNITED STATES TAX COURT
Filed May 24, 2018

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