Tax Court Holds Couple Cannot Reduce Income by Trust Expenses or Gambling Losses

The Tax Court, in Diana M. Price Skore et vir v. Commissioner, TC Summary Opinion 2009-22 (Feb. 18, 2009), held that a couple cannot reduce passed-through income received from a trust by expenses they paid on behalf of the trust because the expenditures were not taken into account by the trust, nor can they reduce their income by unsubstantiated gambling losses.

Posted by Min Young Choi, Associate Editor, Wealth Strategies Journal.