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Tax Coda

Court denies energy-efficiency and business deductions claimed by W-2 worker

Harris v. Commissioner, T.C. Memo. 2025-113, No. 30097-21., 2025 BL 394664, Court Opinion

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Tax Coda
Nov 09, 2025
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The Tax Court rejected an employee’s use of section 179D and other deductions to wipe out wage income, sustained accuracy-related penalties, but declined to impose a two-year EITC ban.

Holding

The Tax Court held the taxpayer was not a “designer” eligible to take section 179D deductions, had no separate trade or business to support section 179 or depreciat…

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