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The second error concerns Vest's use of the installment method of accounting to report gross profits of approximately .2 million from the sale of computer equipment and intangible property by one partnership controlled by Vest to two other such partnerships. However, to be deductible, such expenses must be incurred with the “primary” objective of generating a profit. Section 183 of the Internal Revenue Code (IRC) governs the deductions a taxpayer may take for expenses incurred in an activity “not engaged in for profit.” 26 U.

This sale occurred in January 2008 but payment was not due until January 2018, a fact the purchasing partnerships used to claim depreciation deductions on the assets before making a single payment on the property and the selling partnership used to defer the gain from the sale of the property for a decade.

"In our opinion, this case should not have been filed."President Ruben Buell said Monday that he hasn't seen the lawsuit but "will be researching this diligently." He said the Dallas-based company, whose official business name is True Beginnings LLC, buys ads that run on other dating websites but does not know what happened in this situation."I certainly feel for his family," Buell said Monday.

Plentyof Fish Media did not say how long the ads — including one with Peter Burks' photo that said "Soldiers Want You!

Herb Vest, who is representing himself, asked the circuit court to toss a U. Tax Court’s October order that placed him on the hook for deficiency notices totaling almost million for 2008 through 2010. Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.

FORT WORTH, Texas (AP) — The picture of a handsome, uniformed soldier accompanying online ads that proclaim "Military Man Searching for Love" is an Army lieutenant who was killed in Iraq in 2007, according to a lawsuit filed by his parents Monday against two dating websites. Peter Burks have sued Plentyof and, alleging the companies used their son's photo in ads without their permission, benefitted financially and misled the public.

It upset me," Alan Burks, who lives in Dallas, told The Associated Press on Monday. He said hundreds of thousands of third parties advertise via his company's site every month, and that it cannot control nor know about the content of those ads.

Vancouver, British Columbia-based Plentyof Fish Media spokesman Paul Bloudoff said the company didn't advertise online in the U. Even so, the ad has been blocked from the company's network, he said."We dealt with this matter a month ago," Bloudoff said in an email.

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The IRS determined that the installment method was not available to Vest because he failed to establish that a principal purpose of the transaction was not tax avoidance.

Through these two alleged errors, Vest avoided substantial alternative minimum taxable income from 2008 through 2010, resulting in total income tax deficiencies of approximately million. The IRS's deficiency determination is presumptively correct and the petitioner bears the burden of proving it wrong. A taxpayer is permitted to deduct expenses incurred in carrying on a business or in connection with the production or collection of income.

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