Monthly Archives: November, 2016

1. Estates Entitled to Theft Loss Deductions

   In a recent case involving an estate that underwent extreme loss due to theft (see Estate of Heller v. Comm’r, 147 T.C. No. 11 (2016)), the Tax Court declared that estates are eligible for theft loss deductions, even when the theft occurs to a company owned by the Estate.

2. Limited Partner’s Capital Income is Not Self-Employment Income

   After a recent incident that tested the boundaries and definition of Tax Code Section 1402(a)(13), the IRS has reiterated the fact that managers and/or presidents of LLCs are not considered limited partners and thus must pay self-employment tax on any received shares from their companies.