{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Real Estate Is Taxing","title":"#14: Millions & Mistresses, A Tale of S-Corp Rental Gone Wrong","html":"<iframe width=\"100%\" height=\"180\" frameborder=\"no\" scrolling=\"no\" seamless src=\"https://share.transistor.fm/e/839a2489\"></iframe>","width":"100%","height":180,"duration":1683,"description":"When Renting Real Estate to your S-Corp leads to a deficiency $500,000+ \nThe Gregory and Laura  Schnackel Tax Court Saga: A Tale of Extravagance and Deception\nTaxnotes Case Review:\nhttps://www.taxnotes.com/research/federal/court-documents/court-opinions-and-orders/no-deductions-28000-month-condo-no-business-purpose/7kjhl\nAre you a tax professional looking for an online community focused on growing technical knowledge? Where all responses require a citation? Check out Incite!\nInCite Tax Community:\nhttps://www.incite.tax/\nIn this episode, we delve into the dramatic and intriguing tax court case of Gregory and Laura Shackle as detailed in Tax Court Memo 2024-76. Gregory, the owner of an engineering and design S-Corp, purchases a lavish $3 million New York City condo, furnishes it with $300,000 worth of high-end items, and tries to pass off much of these costs as business expenses. Amidst extramarital affairs and questionable spending, Gregory fails to maintain proper records, resulting in significant penalties and tax deficiencies. Laura, with minimal involvement in the business, successfully applies for innocent spouse relief, while the courts determine the substantial amounts owed. This tale is a striking example of the potential fallout from attempting to misuse business write-offs, and the responsibilities that come with tax reporting, even when using a tax professional. The episode concludes with the fallout from Gregory and Laura’s divorce and the consequential financial and personal unraveling.\n00:00 Introduction to the Case\n00:27 Background of Gregory and Laura\n00:38 Gregory's Business Ventures\n02:57 The New York Condo Purchase\n05:32 Questionable Business Practices\n09:02 Luxury Furnishings and Personal Use\n12:49 The Range Rover Purchase\n15:41 The Affair and Financial Misconduct\n17:56 Innocent Spouse Relief\n19:07 IRS Penalties and Court Rulings\n25:46 Lessons and Final Thoughts","thumbnail_url":"https://img.transistorcdn.com/7p4vFIM7-jHizm--e7xacjLelS5_7Kw6wB_KCTCk4nw/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS85NGRk/Y2QzMzEwMTczM2Mz/MTFiNzJkOTdmODA2/NmE3MC5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}