Miles And Jack Vineyards Inc. V. Petitioneers Case Summary
United States Tax Court
Miles and Jack Vineyards, Inc.
Petitioner
V.
Commissioner of Internal Revenue,
Respondent
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Docket No.
Petition
Miles Raymond (“Miles”) the Petitioner, by his attorney, David Nguyen, hereby petitions for a redetermination of the deficiencies the Commissioner of Internal Revenue (the
“Commissioner”) has set forth in the notice of deficiency dated January 25, 2013. The notice was sent via the IRS Los Angeles, California office. The Petitioner request that this case be conducted under regular tax case procedures and alleges the following:
1. The Petitioner holds a 50% interest in Miles and Jack Vineyards, Inc., an S corporation with winery operations in Buellton, California (Santa Ynez Valley). The …show more content…
These amounts are listed under
“Depreciation” on Table 1.
The amount of depreciation takes into account all buildings, equipment, and improvements made to the property for the purpose of producing wine. The calculation takes into account the applicable depreciation method, applicable recovery period, and applicable convention pursuant to Section 167(a).
The appropriate portion of personal, living, and family expenses have been deducted from capital expenditures and depreciation. Miles and Maya are Texas residents and travel to California on a monthly basis to maintain the winery. When they are at the winery, they use the master bedroom and occasionally the living room area. The majority of the property is dedicated to business purposes: entertaining guests, clients, and future wine tours.
5. Accuracy-related Penalty. Because of the Commissioner’s error in determination of depreciation and ordinary loss, the penalty of 20 percent of the portion of underpayment of any tax due pursuant to Section 6662(a) of the Internal Revenue
Code is also in
Miles and Jack Vineyards, Inc.
Petitioner
V.
Commissioner of Internal Revenue,
Respondent
§
§
§
§
§
§
§
§
§
§
§
Docket No.
Petition
Miles Raymond (“Miles”) the Petitioner, by his attorney, David Nguyen, hereby petitions for a redetermination of the deficiencies the Commissioner of Internal Revenue (the
“Commissioner”) has set forth in the notice of deficiency dated January 25, 2013. The notice was sent via the IRS Los Angeles, California office. The Petitioner request that this case be conducted under regular tax case procedures and alleges the following:
1. The Petitioner holds a 50% interest in Miles and Jack Vineyards, Inc., an S corporation with winery operations in Buellton, California (Santa Ynez Valley). The …show more content…
These amounts are listed under
“Depreciation” on Table 1.
The amount of depreciation takes into account all buildings, equipment, and improvements made to the property for the purpose of producing wine. The calculation takes into account the applicable depreciation method, applicable recovery period, and applicable convention pursuant to Section 167(a).
The appropriate portion of personal, living, and family expenses have been deducted from capital expenditures and depreciation. Miles and Maya are Texas residents and travel to California on a monthly basis to maintain the winery. When they are at the winery, they use the master bedroom and occasionally the living room area. The majority of the property is dedicated to business purposes: entertaining guests, clients, and future wine tours.
5. Accuracy-related Penalty. Because of the Commissioner’s error in determination of depreciation and ordinary loss, the penalty of 20 percent of the portion of underpayment of any tax due pursuant to Section 6662(a) of the Internal Revenue
Code is also in