Miller v. Director, Division of Taxation

KUSKIN, J.T.C.

Plaintiffs challenge an assessment by defendant Director under the Gross Income Tax Act, N.J.S.A. 54A:1-1 to:10-12. The assessment included, as partnership income taxable to plaintiff Richard Miller, discharge of indebtedness income which resulted from a negotiated reduction in the principal balance of a mortgage. The mortgage encumbered an office building owned by a real estate partnership of which Mr. Miller was a member. The parties have filed cross-motions for summary judgment. For the reasons set forth below, I deny the Director’s motion and grant plaintiffs’ motion as to…