Pecan Ranch’s Vague Business Plan Sinks Business Tax Deductions

A couple who own a pecan ranch is on the hook for tax deficiencies and liabilities after the US Tax Court determined Monday that they didn’t operate their ranch as a for-profit business.

Wesley and Janet Young didn’t substantiate the business expenses accrued at their 82-acre Oklahoma property, Pecandarosa Ranch, from 2008 to 2019, Judge L. Paige Marvel said. Nor did they provide a convincing business plan for the site, she said. Marvel backed the IRS determination that they owe about $217,000 in tax deficiencies and $43,000 in penalties for 2013 and 2014 after disallowing the Schedule F expense deductions ...