Baisch v. Department of Revenue

Taxpayers, who are limited partners in Bakersfield Associates (Bakersfield), an Oregon limited partnership, appeal from a judgment of the Oregon Tax Court. The Tax Court held that a 1982 Bakersfield sale and leaseback of commercial property was a “sham” and, consequently, disallowed all deductions on taxpayers’ personal income tax returns for 1982 through 1984 that were attributable to taxpayers’ investments in that transaction. On de novo review, ORS 305.445, we affirm.

FACTUAL BACKGROUND

The complex transaction that is at the core of this dispute began with four individual sales to four…