Title

The Sale of Tax Credits Revisited: A CCA Consecrates (Most of) Tempel,

Authors

Erik M. Jensen

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 .nonrejimdable credits, cmd considers the results to a purchaser.

Keywords

Taxation, Sales of State Income Tax Credits

Publication Date

2012

Document Type

Article

Place of Original Publication

Journal of Taxation of Investments

Publication Information

29 (3) Journal of Taxation of Investments 59 (2012)

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COinS Erik M. Jensen Faculty Bio