Daily Tax Report ®

Millions in Golf Course Deductions Disallowed By Tax Court

Jan. 14, 2020, 10:17 PM

A married couple isn’t entitled to more than $7.3 million in tax deductions for alleged losses related to a golf course, the U.S. Tax Court ruled.

The pair, Glenn David Cuthbertson and Pamela Cuthbertson, claimed the deductions for tax years 2009 and 2010 based on the alleged sale and abandonment of the golf course and on the alleged sale of promissory notes connected to their partnerships. In addition to disallowing the deductions, the Tax Court ruled Tuesday that the pair used the wrong accounting method—one that allowed them to defer recognizing transfer gains—and were liable...

To read the full article log in. To learn more about a subscription click here.