Annotations 09/2010

(migrant workers allege various violations of the MSWPA and violations of the minimum wage provisions of the FLSA; defendant violated the vehicle insurance provision of the AWPA by transporting (or causing to be transported) migrant workers in vehicles that lacked required insurance coverage; housed migrant workers in conditions that violated the AWPA (slept on soiled mattresses without beds and without heat).

(value of petitioner's intangible right to lot lease not subject to ad valorem tax; value of petitioner's mobile home reduced; leasehold interest not subject to tax, just land and improvements). 

(plaintiff did not have right of ingress or egress over tracts of real estate, and only had an easement that had been relocated by a development company; express easement as stated in deed was subject to relocation). 

(estate could not deduct from gross value of estate the amount of capital gain tax decedent owed at time of death to state of California because it was not ascertainable with reasonable certainty as of the date of the decedent's death and decedent had already entered into a settlement with the state as to the amount of capital gain tax liability). 

(petitioners, married couple, improperly deducted personal expenses as business expenses and did not maintain sufficient records to substantiate expenses in accordance with I.R.C. Sec. 274; accuracy-related penalty imposed).

(defendant's ordinance prohibiting pickets and protests within specified distance of funeral or burial service violate plaintiff's First Amendment right to free speech). 

(many Arkansas cotton farmers sued defendant for crop damage from defendant's herbicides; plaintiff issued general commercial liability policy to defendant that contained pollution exclusion clause; clause held applicable). 

(charitable deduction denied for donation via deed over to exempt entity; qualified appraisal contained insufficient information to substantiate deduction).   

(most employee-related business deductions denied for lack of substantiation). 

(as applied to partners in pass-through entities, IRS must separate trade or business income that would be subject to self-employment tax if any partner is an individual or pass-through partner; interesting implications can result from this, but were not explored by IRS). 

(value of health benefits for “domestic partner” who is also a dependent of an employee as defined under I.R.C. Sec. 152 is not subject to FUTA tax). 

(organization that accepts donated conservation easements not a qualified charity; organization could not establish that it could meet the requirements of I.R.C. Sec. 170 to preserve the conservation purposes of donated easements). 

(state Stock Law only applicable to owners of livestock and not to the owner of the real estate where horse was being boarded; case remanded to allow plaintiff to pursue alternative theory that defendant liable in negligence for allowing horse to escape). 

(estate's credit for estate taxes paid limited by I.R.C. Sec. 2013(b) and (c); taxpayer, surviving spouse, had created intervivos trust with spouse that divided four ways on death of first spouse; first spouse made QTIP election on one of the shares and estate of survivor claimed credit for estate taxes paid in first spouse's estate but full credit not available because credit computed incorrectly and no credit available for state taxes paid by first spouse's estate - credit applies to federal estate tax paid only).

(petitioner not entitled to deduction for medical expenses attributable to purchases and improvement to residence; petitioner failed to prove that such expenses related to son's medical condition and were not reimbursed by insurance). 

(accrued interest on tax liability not dischargeable in bankruptcy; interest and penalties not treated similarly for purposes of discharge). 

(relative to size of the economy, the August 2010 federal budget deficit (at 9.1 percent of GDP) is second largest deficit since WWII; largest deficit was in August of 2009 - at 9.9 percent of GDP; outlays for interest on debt were 13 percent higher than same period in 2009).

(city's ordinances designed to control deer population by prohibiting feeding of deer in city limits and allowing bow hunting in city limits not pre-empted by Kentucky law or administrative regulations; Kentucky ordinances do have pre-emptive force as against Kentucky municipal ordinances). 

(deed construction case involving easements by county and federal government and condemnation action by county; condemned property subject to highway easement and conservation easement and conservation easement yields to highway easement). 

(appellate court erred in reversing trial court's determination that constructive trust should be imposed for holding of family farm; oldest brother had been unjustly enriched by accepting siblings' years of contributions to the farm's success). 

(oral cash farm lease did not die with tenant and surviving spouse, as sole beneficiary of tenant's estate, entitled to lease termination notice in accordance with state law (six months notice before March 1); court reasoned that cash lease does not require personal services (so lease did not end on tenant's death) but stated that crop-share lease does require personal services of tenant and would end on tenant's death with no further notice of termination required; court did not state how, in cash lease situation, crop is to get planted and harvested without tenant's personal services).

(current monthly income of both spouses must be used to calculate the applicable commitment period; bankruptcy court's order confirming debtors' chapter 13 plan is affirmed). 

(ordinance makes it unlawful to wear "baggy pants" (origin in prison culture) in public; ordinance states, "the city finds that the exposure of a person's buttocks, genital area or undergarment is offensive and indecent"; city noted instances of baggy pants being used to facilitate theft crimes and that the wearing of baggy pants is injurious to health of wearer by causing improper gait; ordinance makes wearing of such pants akin to public display of masturbation, nudity and defecation; violators to be issued citation and penalized $25 upon first offense and not more than $200 for each subsequent offense as well as possible court-ordered community service).

(easements set forth in express grant were private easements for the use and benefit of parties to the litigation and did not constitute public roads; easements (with the exception of one road) could not be blocked by a gate; no dedication of roads to public use due to no acceptance by the public). 

(court reverses plaintiff's conviction of misapplication of fiduciary property (family assets contained in trust that passed to children upon death of parents); evidence insufficient to show that misapplied assets were actually owned by plaintiff or held for her benefit; judgment of acquittal entered). 

(non-residents of Minnesota cannot offset Minnesota-based capital gain income (derived from sale of MN farmland) with loss carryover from sale of out-of-state (non-Minnesota) properties; carryover did not relate to property taxed in Minnesota; gambling losses disallowed). 

(gifts of LLC interests subject to substantial transfer restrictions; I.R.C. Sec. 2703(b) inapplicable because LLC not bona fide business arrangement - no evidence of investment strategy).

(gifts of LLC interests subject to substantial transfer restrictions; I.R.C. Sec. 2703(b) inapplicable because LLC not bona fide business arrangement - no evidence of investment strategy).

(court approves plaintiff's request to convert productive agricultural land to transportation use via condemnation). 

(defendant's 2006 proposed amendments to Taylor Grazing Act of 1934 violated National Environmental Policy Act by failing to account for environmental effects of the regulations; defendant failed to consult with USFWS as required by Endangered Species Act; defendant also violated FLPMA in developing the regulations). 

(estate not entitled to I.R.C. Sec. 2053 deduction for interest on loan taken out to pay federal and estate taxes; estate failed to prove necessity of loan and had enough liquid assets to pay the taxes). 

(issue in case was whether decision of USCOE and USFWS approving construction of business park on protected wetlands was arbitrary and capricious; agencies reasonably concluded that effects of proposed project would not appreciably diminish value of habitat of endangered species and agency finding of no "adverse modification" not arbitrary or capricious").

(another ruling in a line of rulings over the past couple of years noting that payments that a cooperative makes to farmers for grain deliveries constitute PURPIMs; cooperative's DPAD to be computed without taking into account any deduction for such payments).