DKD Enterprises, et al. v. Comr., 685 F.3d 730 (8th Cir. 2012), aff'g., in part and rev'g., in part, T.C. Memo. 2011-29

 (Tax Court held that taxpayer's information technology consulting company (conducted in her home in West Des Moines, Iowa) determined to not be a qualified personal service corporation, and taxpayer's cat breeding activity not conducted as a trade or business resulting in non-deductible expenses; Tax Court made numerous other findings: taxpayer's business cannot deduct under I.R.C. Sec. 162(a) amounts related to cat-breeding activity that were treated as reimbursements to taxpayer and her personal partner as well as amounts paid for taxes and licenses, and such amounts must be included in gross income as constructive dividends; Tax Court determined that taxpayer cannot deduct amounts for home mortgage interest and real estate taxes, and that taxpayer's corporation cannot deduct amounts paid into investment fund maintained for the business; Tax Court disallowed any deduction allowed for premium amounts paid on account of health insurance policy purchased for taxpayer; on appeal, 8th Circuit determined that Tax Court had properly assessed deficiencies and penalties insomuch as cat-breeding activity operational costs were not legitimate trade or business expenses; funds spent by company to operate cat-breeding activity were taxable to taxpayer as constructive dividend and funds spent by business for taxpayer's health insurance not deductible or excludible by taxpayer because arrangement not health insurance plan; but, company can deduct contributions to profit-sharing plan for particular years insomuch as such contributions did not constitute constructive dividends).