The Sale of Tax Credits Revisited: A CCA Consecrates (Most of) Tempel,
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.
Taxation, Sales of State Income Tax Credits
Place of Original Publication
Journal of Taxation of Investments
29 (3) Journal of Taxation of Investments 59 (2012)
Jensen, Erik M., "The Sale of Tax Credits Revisited: A CCA Consecrates (Most of) Tempel," (2012). Faculty Publications. 485.