Tony & Damien’s Top 10: An Audit for the Horses

A Virginia-based S corporation specializing in agriculture and horse-breeding transferred land to various third parties. Some of these transfers were made gratuitously, and the others were reported as nontaxable loans with accompanying re-purchasing agreements. The IRS determined that not everything was as it seemed, arguing that the taxpayers owed millions. But what did the US Tax Court conclude? Tony and Damien dig in.