Saturday, May 13, 2006

Alabama trial lawyer who won millions from class action settlement lost almost all of it day trading but convinces the US Tax Court to allow him to set off his attorney fees with all his losses TAX COURT GIVES CLASS-ACTION MAGNATE AND DAY-TRADER A MULLIGAN Alabama class action plaintiff's attorney Lanny Vines won millions in 1999 from a class action settlement. He closed his office and started full time day trading. He promptly lost most of his money when the Nasdaq tanked in 2000. He and his accountants didnt know about the IRS election to count those losses as ordinary gains (475 f elections) . Otherwise Lanny would be taking the maximum $3000 capital loss deduction for the next few centuries. When he tried to file it late, the IRS refused. Finally the tax court let him go file the election. Now hes back to litigating and shaking down defendants.

1 comment:

ptg said...

I find it difficult to begrudge anyone a 'Mulligan' from the IRS, but this smacks of social engineering at the tax court. Judicial activism: it's everywhere.