Tropeano v. Commissioner
United States Tax Court
Petitioners recognized capital gain from the sale of property located in the Republic of Ireland. Ireland imposed a tax on such capital gain at a flat rate of 26 percent. Had such gain been taxed at ordinary rates rather than the flat 26-percent rate for capital gains, the tax imposed by Ireland would have been substantially higher.
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Petitioners recognized capital gain from the sale of property located in the Republic of Ireland. Ireland imposed a tax on such capital gain at a flat rate of 26 percent. Had such gain been taxed at ordinary rates rather than the flat 26-percent rate for capital gains, the tax imposed by Ireland would have been substantially higher. Held, such foreign-source capital gain was accorded "preferential treatment" within the meaning of sec. 58(g)(2)(B), I.R.C. 1954, and thus gave rise to an item of tax preference subject to the minimum tax under sec. 56.
1Opinion of the Court
OPINION
Fay, Judge:
Respondent determined a deficiency of $8,598 in petitioners’ Federal income tax for 1976. The issue is whether certain foreign-source capital gain recognized by petitioners is subject to the minimum tax imposed by section 56.1
All the facts have been stipulated and are found accordingly.
Petitioners Guy G. Tropeano and Gloria Tropeano resided in Weston, Mass., when they filed their petition in this case.
In 1976, Guy G. Tropeano (petitioner), was a general partner of North Atlantic Associates (NAA), a limited partnership. During 1976, NAA recognized capital gain from the sale…
2Cases cited1 opinion
- Austin v. United StatesCourt of Appeals for the Fifth Circuit · 1980
3Cited by1 opinion
- Tropeano v. CommissionerUnited States Tax Court · 1981