Oregon Vineyard Denied For-Profit Deductions by Tax Court

A vineyard that wasn’t operated for profit can’t claim tax deductions exceeding its income, the Oregon Tax Court held.

Houston Vineyards Inc. had losses totaling about $100,000 for tax years 2018 through 2021, and incomplete and inaccurate record-keeping of sales and production suggest that the owner wasn’t putting in an effort to make a profit, Magistrate Poul F. Lundgren said.

• “The vineyard was operated without even rudimentary record-keeping while the farm’s expenses dwarfed its revenues,” the unpublished opinion said
• Under the Internal Revenue Code, which the state’s income tax law tracks, property owners can deduct expenses that equal up to ...