In the U.S. Tax Court and Ninth Circuit Court of Appeals, JMBM successfully represented the two California founders of a women’s apparel business against the IRS. The IRS attempted to disallow our clients’ deduction of business losses from their charter jet operation, saying that the business was not being run with the intent of making a profit.
We demonstrated that, while the operation wasn’t their primary business, our clients had applied their business skills to operating the jet business and kept detailed records documenting their management efforts – facts that established their right to the deduction under the Tax Code.