Top 10 Tax Cases of 2022 with Tony Nitti and Damien Martin

Tax cases and guidance can provide a key to unlocking a deep understanding of the tax law for  tax professionals and also help them better serve clients in planning and structuring transactions. Join Tony Nitti and Damien Martin for their fourth annual conversational exploration of key lessons from Tony’s top ten cases of the 2022.

Here’s an overview of what they cover:

1. Rogerson v. Commissioner (T.C. Memo 2022-49): Tax Court sided with IRS in asserting the taxpayer materially participated in an activity under the “five of ten-year rule.”
2. TAM 202229036: Taxpayers must count years qualified for material participation under the Significant Participation Test in applying the “five of ten-year” test for purposes of the material participation tests under Temp. Reg. Sec. 1.469-5T.
3. IRS Chief Counsel Advice Memorandum 202151005: Providing “extra” amenities and services to tenants could subject rental income to self-employment taxes.
4. Hoops LP v. Commissioner (T.C. Memo 2022-9): Tax Court sustained the IRS’s disallowance of a deduction for accrued but unpaid deferred compensation obligations by an accrual-method taxpayer who sold a basketball team.
5. Milkovich v. U.S. 24 F.4^th 1 (9th Circ. 2022): The 9^th Circuit permitted an IRC Sec. 163 deduction related to foreclosure proceeds.
6. Musselwhite (T.C. Memo 2022-57): Tax Court determined that a taxpayer’s losses on the sale of four land lots he received from his LLC were capital losses.
7. Starer v. Commissioner (T.C. Memo 2022-124): Tax Court determined a married couple who were controlling shareholders of an S corporation operating agriculture and horse-breeding businesses did not properly report transfers of property made by the corporation.
8. Wendy J. Mihalik v. Commissioner (T.C. Memo 2022-36): Tax Court held a retired airline pilot had to include the value of standby tickets used by relatives that were neither his spouse nor dependent children in income.
9. CCA 202204007: IRS concluded a business facilitating property rentals between lessors and lessees is providing brokerage services within the meaning of IRC Sec. 1202(e)(3)(A).
10. Proc. 2022-19: Guidance on six areas where taxpayers otherwise would need to seek a Private Letter Ruling.

Timestamps

00:00:00 – Introduction
00:08:36 – Rogerson v. Commissioner (TC Memo 2022-49)
00:41:43 – TAM 202229036
00:53:54 – IRS Chief Counsel Advice Memorandum 202151005
01:09:26 – Hoops LP v. Commissioner TC Memo 2022-9
01:33:28 – Milkovich v. U.S. 24 F.4th 1 (9th Circ. 2022)
01:55:48 – Musselwhite (TC Memo 2022-57)
02:20:58 – Starer v. Commissioner (TC Memo 2022-124)
02:29:44 – Wendy J. Mihalik v. Commissioner (TC Memo 2022-36)
02:42:04 – CCA 202204007
02:53:34 – Rev. Proc. 2022-19
03:15:17 – Closing Remarks