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
Guy G. Tropeano and Gloria Tropeano, Petitioners v. Commissioner of Internal Revenue, Respondent
Tropeano v. Commissioner
Docket No. 11060-79
United States Tax Court
77 T.C. 1144; 1981 U.S. Tax Ct. LEXIS 26;
November 19, 1981, Filed
Decision will be entered for the respondent.
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…
2Cases cited1 opinion
- Tropeano v. CommissionerUnited States Tax Court · 1981