Minnesota: Commissioner of Revenue Cannot Disregard Captive REIT

Commissioner of Revenue does not have the authority to attribute income to and assess taxes on a business on the grounds that the business structured itself to comply with the relevant tax statutes and was motivated to do so solely by tax avoidance.

Read the opinion here:
HMN Financial, Inc. v. Commissioner, Docket A09-1164 (Minn. Sup. Ct. May 20, 2010).

District Court: Tax Effect of a Son of Boss Transaction Denied

In a lengthy opinion, the United States District Court for the District of Massachusetts disallowed the tax benefits accruing from a Son of Boss transaction promoted by KPMG and entered into by the former U.S. Ambassador to Ireland, Richard Egan.

Fidelity International Currency Advisor A Fund, LLC v. United States, Docket 05-40151 et. al. (D. Mass May 17, 2010)

Tax Court: No Beneficial Ownership of Corporate Assets at Death

The Tax Court rejected the government’s beneficial ownership argument and found that petitioner did not have a property interest in income producing warehouses at death. ┬áThus, the value of the those warehouses was not includable in his estate for estate tax purposes under Section 2031.

Estate of Fortunato v. Commissioner, T.C. Memo 2010-105