CNT Investors, LLC v. Comm'r
United States Tax Court
C and his wife and related individuals owned appreciated real estate through an S corporation (S). C and the related individuals engaged in a Son-of-BOSS transaction to create outside basis in a purported partnership to which S contributed the appreciated real estate. A series of further transactions left C and the related individuals holding the real estate through the partnership. No party reported recognizing any of the real estate's built-in gain.
Read the full summary
C and his wife and related individuals owned appreciated real estate through an S corporation (S). C and the related individuals engaged in a Son-of-BOSS transaction to create outside basis in a purported partnership to which S contributed the appreciated real estate. A series of further transactions left C and the related individuals holding the real estate through the partnership. No party reported recognizing any of the real estate's built-in gain. For 1999 R determined that the partnership was a sham and adjusted to zero the partnership's reported losses, deductions, distributions,…
1Opinion of the Court
CONTENTS
FINDINGS OF FACT . 164
I. Introducing the Carroll Family . 165
II. Solving the Low Basis Dilemma . 168
III. Selling the Son-of-BOSS Strategy . 171
IV. Achieving the Basis Boost . 173
A. Son-of-BOSS . 174
B. Basis Boost . 176
C. Real Estate Extraction ... 177
V. Reporting the Transactions .. 179
A. CNT’s 1999 Returns . 179
B. CCFH’s 1999 Return . 180
C. Individuals’ 1999 Returns H QO 1 — I
VI. Challenging the Transactions H CO T — !
OPTNTON C\ cc 1—
I. Preliminary Matters . 182
A. When Appellate Venue Matters . 182
B. Why Appellate Venue Does Not Matter Here . 183
II. Timeliness of the FPAA . 186
A.…
2Cases cited106 opinions
- Crawford v. WashingtonSupreme Court of the United States · 2004
- Ohio v. RobertsSupreme Court of the United States · 1980
- Gregory v. HelveringSupreme Court of the United States · 1935
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- HIGBEE v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
101 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- In re WylyUnited States Bankruptcy Court, N.D. Texas · 2016
- Curtis Inv. Co., LLC v. Comm'rUnited States Tax Court · 2017
- Putanec v. Comm'rUnited States Tax Court · 2016
- Celia Mazzei v. CommissionerUnited States Tax Court · 2018
- Alternative Health Care Advocates v. CommissionerUnited States Tax Court · 2018
7 more not listed; retrieve them via the Exa API.