Abstract
In a 2011 decision, Tempel v. Commissioner, the Tax Court had held, among other things, that gain on sales of state income tax credits was capital gain. In a new Chief Counsel Advice, the IRS has accepted the result, and most of the analysis, of Tempel, and it has also provided guidance about the tax consequences to a purchaser of credits. This article analyzes the CCA, discusses the remaining disagreements between t e Service and the Tempel court, stresses that the CCA's conclusions are explicitly limited to nonrefundable credits, and considers the results to a purchaser.
Keywords
Taxation, Sales of State Income Tax Credits
Publication Date
2012
Document Type
Article
Publication Information
Journal of Taxation of Investments, Spring 2012, at 59
Repository Citation
Jensen, Erik M., "The Sale of Tax Credits Revisited: A CCA Consecrates (Most of) Tempel," (2012). Faculty Publications. 485.
https://scholarlycommons.law.case.edu/faculty_publications/485
