112526P.pdf   07/17/2012  DKD Enterprises  v.  Commissioner of IRS
   U.S. Court of Appeals Case No:  11-2526
                          and No:  11-2529
                          and No:  11-2528
                          and No:  11-2530
   Appeal from the United States Tax Court   
   [PUBLISHED] [Riley, Chief Judge, with Wollman and Smith, Circuit Judges]
   Civil case - Federal Tax. The Tax Court's findings: (1) that DKD's
   cattery operation costs were not legitimate trade or business expenses
   under 26 U.S.C. Sec. 162(a); (2) that funds spent by DKD to operate the
   cattery were taxable to Dursky, its owner, as a constructive dividend; and
   (3) that funds spent by DKD to pay Dursky's health insurance were not a
   deductible accident or health plan under 26 U.S.C. Sec. 106(a) or an
   excludable ordinary and necessary business expense under 26 U.S.C. Sec.
   162(a) are affirmed. The Tax Court's decisions that DKD's contributions
   to a profit-sharing pension plan for 2003 and 2004 did not qualify for the
   26 U.S.C. Sec. 401 and Sec. 501 deduction are reversed; the case is
   remanded to the Tax Court for further consideration of whether DKD's
   2006 pension plan contribution qualified for the deduction in the 2005 tax
   year and whether that distribution is taxable to Dursky.