The Arkansas Department of Finance and Administration properly barred a couple from taking income tax deductions totaling more than $235,000, the state high court ruled, affirming a tax bill of about $54,000.
Michael and Susan Gates claimed several deductions on behalf of their S-corporation, Stonebridge Collection Inc., which personalizes pocket knives. The Arkansas Supreme Court held in 2023 that the department failed to explain the math it used to determine the couple’s liability, but this time around the department properly showed its work, Justice Nicholas Bronni wrote for the court in an April 24 opinion.
- Unlike in Gates I ...
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