Tax
Oct. 7, 2020
Finding something valuable can lead to tax woes
Consider the case of the recent find by a 33-year-old Arkansas man, who found a massive 9-carat diamond in a public state park in Arkansas.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Is finding something of value ever a tax problem? It's hard to see how, since you might assume that you could never end up in the hole. But when you think about it, it's not uncommon to have income for tax purposes when you don't have cash. Say you are a partner in an LLC or a shareholder in an S corporation. You might receive a K-1 that says your share of the income is $100,000 for last year, but you might not receive any cash to pay yo...
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