Annotations 10/2011

(trial court determined that defendant took advantage of and inflicted intentional emotional distress on plaintiff with result that deed in issue rescinded; deed had conveyed property to defendant; plaintiff suffers from severe dyslexia and slow mental processing; defendant befriended plaintiff and became his only friend; plaintiff felt intimidated and fearful of defendant; defendant moved to property and started a ministry; defendant coerced plaintiff to transfer half interest in property to defendant; plaintiff eventually moved off his property; plaintiff sued and defendant argued claims should fail due to statute of limitations; court stated plaintiff suffered several years of torment by defendant; jury found defendant's conduct was extreme, outrageous, and beyond the bounds of decency in a civilized community; appellate court affirmed trial court’s rescission of deed). 

(trust was residual beneficiary of estate and trust assets were included in gross estate; trust borrowed money to allow estate to pay estate taxes; estate entitled to administrative expense deduction for interest on the loan; loan was bona fide debt and ascertainable with reasonable certainty and was actually and reasonably necessary - estate not required to sell assets at a discount to come up with the funds to pay estate tax; terms of loan reasonable).

(defendant allegedly added fill material without a permit to part of his property that was a federally-designated wetland subject to the Clean Water Act;  trial court entered summary judgment for government; on appeal, court affirmed on basis that federal government had jurisdiction over alleged wetland under either Justice Kennedy's test in Rapanos (significant nexus test) or the test established by the plurality opinion inRapanos (continuous surface connection test); court joins First and Eighth Circuits in holding that jurisdication present if either Kennedy test or test of plurality satisfied). 

(plaintiff (borrower in the midst of bankruptcy) got approval from bankruptcy court to receive loan from lender so that borrower could retain farm; loan secured by farm; bankruptcy proceedings terminated and loan later modified and farm later conveyed to lender; borrower sued lender for reformation of associated deed, mortgage and land installment based on lender’s alleged fraudulent conduct arising from parties’ romantic relationship that gave lender opportunity to manipulate transaction and take advantage of borrower; court found significant evidence of plaintiff's knowledge and education in business; court stated plaintiff was knowledgeable in business and financial endeavors, no manipulation in financial decisions present).

(IRS announces acquiescence in O'Donnabhain v. Comr., 134 T.C. 34 (2010) in which the court held that petitioner's medical expenses associated with psychological discomfort deductible medical expenses under I.R.C. Sec. 213; hormone therapy and sex reassignment surgery were expenses associated with curing petitioner's psychological disorder and were not non-deductible cosmetic surgery; but breast augmentation surgery was directed at improving petitioner's appearance and not associated with petitioner's psychological disorder; no mention of whether such expenses, if incurred by parents of newborn baby on behalf of baby, would be deductible medical expenses).

(trustee in Chapter 7 bankruptcy sought to recover payments made by ethanol plant to corn producers within 90 days before bankruptcy; corn producers filed summary judgment motion contending payments based on forward contracts, which are protected from recovery by 11 U.S.C. § 546(e); issue is whether contracts with delivery dates ranging from date of contract until a later date are forward contracts; forward contracts require a maturity date more than two days after contract is entered into; court adopts financial market definition of maturity date, which is “the future date at which the commodity must be bought or sold” and when the benefit or detriment is realized because ownership and risk of loss passes to the buyer and the buyer is obligated to pay to determine maturity date; reviewing contracts at issue, court found shipments were not delivered within two days of contract formation; all contracts were determined to be forward contracts protected by 11 U.S.C. § 546(e)).

(decedent had executed two wills during life and the second will was admitted to probate; more than two years after will admitted to probate, decedent's niece sued to set aside the will and probate the first will; two-year statute of limitations on such actions triggered on date of admission of will to probate and not when executor served niece with original petition to recover estate assets (which was the time the niece learned of the existence of the second will and that it had been admitted to probate); discovery rule inapplicable to will contest actions unless fraud or forgery present; court noted that probate records are public and all persons on constructive notice if they have any intent to contest the will; unawarness of probate proceedings does not impact statute of limitations). 

(taxpayer resided in Roanoke, AL, and started a sole proprietorship offering vocational rehabilitation services and got referrals from LA; taxpayer incurred travel expenses between home and LA locations (flights); home office determined to be principal place of business and taxpayer entitled to deduction for ordinary and necessary transportation expenses paid or incurred for travel away from home in pursuit of sole proprietorship's business; portion of home converted to home office). 

(taxpayer entered into contract for deed to buy house in 2008; taxpayer planned to use first-time homebuyer tax credit amount to renovate home before moving in; credit received in 2009 and used for renovations on home; IRS later disallows credit and issues deficiency notice on basis that taxpayer had not "purchased" home as defined under I.R.C. Sec. 36, but had acquired home under contract for deed and lacked equitable or legal title; court determined that under state (TX) law, benefits and burdens of ownership passed to taxpayer under contract; contract constituted financing agreement under which seller maintained legal title until payments complete under contract; court also rejected IRS argument that home not used as taxpayer's principle residence on basis that there is no occupancy requirement contained in I.R.C. Sec. 36; prospective analysis to be applied in determining whether home will be occupied as primary residence; recapture provision of I.R.C. Sec. 36(f) not supportive of IRS argument; taxpayer gave credible testimony that he was going to live in the house after completing necessary renovations funded with the credit, but couldn't complete them until uncertainty over credit cleared-up).

(Kansas Department of Revenue provides table of what purchases associated with crematories, funeral homes and cemeteries are subject to state sales or compensating use tax; for purchases subject to tax, the tax must be paid to the vendor or accrued and remitted directly to the Department).

(device used to store energy from aerogenerators is deemed to be part of the qualified property at a "qualified investment facility" in accordance with I.R.C. Sec. 48(a)(5); investment credit applicable against entire cost).

(family partnership owned agricultural property and transferred one parcel from the partnership to an individual owner; county determined that current agricultural use valuation (CAVU) tax status of tract to be determined in isolation rather than in consideration of the continuing agricultural use of the adjacent parcels still owned by the partnership, and denied CAUV status; tract in issue contained trees not grown for commercial purposes; Ohio Board of Tax Appeals reversed on basis that statutory phrase "growth of timber for a noncommercial purpose" did not require that trees be grown as a crop; county also wrong that CAVU status only applicable for portion of parcel under cultivation; survey not required because no part of non-cultivated property used for commercial purpose). 

(grantor established revocable living trust and died at age 62; surviving spouse age 61 at time of grantor’s death; grantor left two children (who are not surviving spouse’s children; grantor, during life, participated in employer’s qualified defined benefit contribution plan; trust provided for creation of marital trust for surviving spouse funded with employee benefit plans, and created primary trusts and exemption trusts for each of children; exemption trusts get equal shares of grantor’s remaining GSTT exemption and primary trusts get balance of trust assets after all other distributions and allocations; surviving spouse gets net income generated by marital trust assets and trustee has invasion power for surviving spouse; plan provided for direct rollover of distribution to non-spousal beneficiary that is a designated beneficiary; IRS rules that beneficiaries treated as designated beneficiaries; surviving spouse’s life expectancy to be used to determine distribution period; amount directly rolled over to IRA established on behalf of marital trust not included in income or marital trust).

(plaintiff sued defendants for breach of option contract involving sale of ranch land; defendants, married couple, had agreed to sell part of ranch to plaintiff and leased balance of land (on which their son was part owner) to plaintiff; separate agreement gave plaintiff option buy part of ranch which, when plaintiff exercised option, son refused to agree to sale; son’s parents subsequently partitioned property; purchase price not agreed upon purchase price and plaintiff sued; trial court determined that defendants breached option agreement even though option language ambiguous, parol evidence established that parties intended option price to be average of $500/acre; on appeal, court determined that parties agreed that prorated purchase price to be utilized if lesser amount of acreage sold; trial court erred in using parol evidence to allow different remedy than one provided for by option agreement).   parties met several times before execution of any contract; three separate negotiated legal contracts were executed consecutively (sale of property, lease of remaining property, option to purchase remaining property); plaintiff exercised option contract; defendant not sole property interest owner; defendant's son refused to sell his property interest; result was that trial court order of specific performance affirmed, but trial court determination of per acre price reversed and case remanded).

(appellant transferred title to his home to his two sons and himself by warranty deed in 2003 for consideration of $500 or less; in 2009, appellant executed warranty deed transferring title to home to the two sons, reserving a life estate for consideration of $500 or less; 2009 deed referred to as "corrective deed" and referred to 2003 deed; five months after execution of "corrective deed," appellant applied for Medicaid benefits; state Medicaid agency determined that appellant made disqualified transfer of home by virtue of 2009 deed in which the appellant transferred his interest as joint tenant without receiving fair market value compensation and imposed 3.84-month ineligibility period for Medicaid benefits; agency decision upheld at hearing and hearing decision upheld by trial court; on appeal, court noted that transfers within 5-year look-back period are presumed to have been made for purpose of establishing or maintaining medical assistance eligibility; 2009 deed did not merely correct 2003 deed - 2003 deed conveyed a one-third joint tenancy to each of the sons with no reference to a life estate, while 2009 deed does more than simply correct clerical error; one son's testimony that father intended to transfer life estate in 2003 rejected and agency's determination entitled to deference). 

(Medicaid applicant’s transfer of house to children with reservation of life estate is disqualified transfer resulting in transfer penalty; deed to house transferred to children in 2003; life estate reserved via separate deed in 2009 which purported to correct error in 2003 deed; later in 2009, Medicaid benefit application filed on transferor’s behalf; state determined that transfer was of an uncompensated joint tenancy and imposed transfer penalty; lack of evidence that 2003 deed intended to reserve life estate, so 2009 deed did not merely correct clerical error). 

(court applied Iowa Code §598.21(2009) to divide inherited property in divorce; couple were married 25 years; husband inherited 160-acre farm in 1990; couple lived on property; couple used wife's inheritance as down payment on 85-acres bordering husband's inherited property; court found no evidence husband's parents intended to include wife in inheritance of property; court upheld wife's property award of 85-acre tract but that husband’s inherited farm not subject to division). 

(case involves various motions by parties and plaintiff's suit to compel arbitration of multiple grain contracts entered into with defendant and defendant's farming operation; plaintiff's motion to compel arbitration granted based on clause in contracts (standard NGFA arbitration clause)). 

(for 2008 and 2009, based on IRS data, average taxpayer in top 1 percent (filers earning at least $343,927 annually) made less than in prior year and were subjected to a higher effective tax rate; drop in income from 2007-2009 was 20.41 percent while effective tax rate rose 6.95 percent). 

(wind farm's equipment purchases of wind turbines and support towers (among other items) are not subject to sales tax; items used in production of electricity).

(proposed redemption of some of S corporation shareholder's non-voting stock is tax-free; second class of stock not created; distribution conditioned on total distribution of stock during tax year not in excess of amount of company's accumulated adjustments account as of year end; distributions not to exceed shareholder's stock basis). 

(petitioner and wife separated and wife given temporary possession of marital home and appointed joint managing conservator with husband over two children; children resided with wife for greater portion of tax year; petitioner not entitled to dependency exemptions or child tax credits which wife also claimed on her return; no Form 8332 attached to return; simply paying all costs on marital home for tax year in issue insufficient to allow dependency exemption; child tax credit not allowed because children not "qualifying children"). 

(petitioner earned six-figure income as vice principal of high school in MN, but owned single-family house in K.C. near K.C. airport; house rented to tenants in 2004 and 2005; house has appreciated in value but is unfurnished; petitioner would post signs that house available to rent; claimed expenses on home for 2006 and 2007 exceeded income from home which IRS disallowed because home not held for production of income and losses were from passive activity; court held that house held for production of income and thus all ordinary and necessary expenses paid or incurred during tax year are deductible under I.R.C. Sec. 212; active participation test of I.R.C. Sec. 469(i) satisfied which allows petitioner to deduct up to $25,000 of rental real estate losses (subject to phase-out starting at AGI of $100,000; deductions allowed for substantiated expenses; court estimated some unsubstantial expenses under Cohan rule; deductions allowed totaled 413,000; 20 percent accuracy-related penalty imposed). 

(plaintiff, a landowner owning land adjacent to abandoned railroad, claimed that its property rights were taken by the Rails to Trails Act (16 U.S.C. Se. 1247(d)) upon abandonment or railroad; under state law, deeds at issue transferred fee simple absolute to railroad rather than easement; three-step analysis set forth in Preseault v. United States, 100 F.3d 1525 (Fed. Cir. 1996) applied in analyzing property rights in railroad abandonment cases). 

(assets that Medicaid applicant transferred to children who later on same day transferred assets to irrevocable trust for applicant’s benefit held to be available to applicant for Medicaid eligibility purposes even though transfer occurred 17 years before application; under state (WI) law, assets in trust are deemed available if applicant’s assets used to fund trust and trust formed under applicant’s direction; not necessary that applicant have legal ownership of assets used to form trust at time trust is formed; reasonable inference present that children created trust at applicant’s direction). 

(petitioners, married couple, not entitled to greater casualty loss deduction for tornado damage to home than what IRS allowed due to lack of substantiation; petitioners received insurance reimbursements of $37,524 and paid contractors $27,353 for cleanup and repairs; $40,355 casualty loss claimed on joint return and husband's business claimed casualty loss deduction of $7,121 for residence on Form 1065 attributable to office in home; petitioners attempted to calculate before and after value of home and subtract insurance proceeds and estimate of damage caused by tornado; subsequently hired appraiser producer report with numerous valuation errors; all property and casualty loss involved personal assets; cost of actual repairs must be substantiated if repair costs to be used in valuing loss rather than estimates; petitioner hypothesized values and amount of loss; accuracy-related penalty imposed). 

(report details that revenue generated during first three quarters that "tanning tax" was in effect (which was contained in the 2010 health care act) is approximately 25 percent of what Obama Administration anticipated would be collected; 10,300 business, rather than the anticipated 25,000 business providing indoor tanning services filed excise tax returns reporting the additional 10 percent tax; provision is difficult for IRS to administer).

(at issue were whether various items of plaintiff's personal property subject to state personal property tax; plaintiff operated a farm and a pumpkin patch of about 16-18 acres that attracted approximately 50,000 people to the farm; wheelbarrows used to transport pumpkins from field to store used exclusively for transporting pumpkins and qualified as "farm machinery" exempt from personal property tax; however, sternwheelers, trains, train cars and traffic safety equipment not entitled to exemption because such items not used primarily in harvesting activities). 

(defendants operate or have operated coal-fired power plant since late 1960s and plaintiff alleges violation of Clean Air Act (CAA) and associated state law provisions including common law public nuisance claim on basis that defendants did not apply for or obtain permit under CAA (Prevention of Significant Deterioration Program) when upgrading the plant to cut emissions of sulfur dioxide; defendants' motion to dismiss granted; plant grandfathered under CAA; Congressional intent was to not subject existing plants to CAA requirements; no violation of 42 U.S.C. Sec. 7475(a) pertaining to pre-construction permits; no civil penalties imposed; injunctive relief not warranted; CAA does not incorporate PSD requirements into Title V permits; state law claims dismissed as duplicative of CAA claims; public nuisance claim without merit based on American Electric Power Co. v. Connecticut, 131 S. Ct. 2527 (2011) and North Carolina, ex rel. Cooper v. Tennessee Valley Authority, 615 F.3d 291 (4th Cir. 2010)).

(plaintiff appealed summary judgment for defendants in negligence case; plaintiff sought to recover damages for injuries sustained after motorcycle plaintiff riding collided with cable across private access road to property; road was visibly marked "Private Road No Trespassing" and cable had several yellow caution ribbons and an orange cone on it when the accident occurred; fellow rider noticed cable and stopped; plaintiff passed rider continuing to look back and forth before colliding with cable; plaintiff acknowledged not looking forward and eyes wandering before accident; plaintiff had previously worked at quarry on the private road; plaintiff had on several occasions moved the cable; court found plaintiff was a trespasser, entering for his own purpose; plaintiff failed to establish requirements of causation or that defendant acted willfully and wantonly; summary judgment for defendant affirmed). 

(TIGTA notes that IRS reported total of $29.7 billion in first-time homebuyer credit claims were made by over 4 million taxpayers as of May 7, 2011; TIGTA notes that IRS issued incorrect notices or failed to send notices to 61,427 households; errors caused by programming errors or wrong information on tax account; much information provided to IRS by taxpayers was incomplete or inaccurate). 

(petitioner not entitled to charitable deduction for $660 expenditure to rent bus for use of non-profit cheerleading team; petitioner failed to substantiate contribution by producing written acknowledgement from donee as required by Treas. Reg. Sec. 1.170A-13(f)(10); money order receipt insufficient to substantiate contribution of more than $250). 

(change in form of business does not constitute a "disposition" for purposes of accelerating installment payment of estate tax under I.R.C. Se. 6166(g); acceleration provision applies where interest in closely held business is "distributed, sold, exchanged, or otherwise disposed of"; statutory language concerned with ways that interest ceases to be part of gross estate).

(on procedural vote to proceed, bill fails 50-49 (60 votes needed to get to vote on measure; all Republicans voted against the bill as did three Democrats (Nelson of Nebraska, Tester of Montana and the bill's sponsor, Reid of Nevada); both Nelson and Tester are up for re-election in 2012, and additional Democrats are on record stating that they would not vote for the bill in an actual vote on the bill itself). 

(class certification rejected for parties that borrowed money and claimed that "predatory lending" schemes subjected them to "toxic" adjustable-rate mortgage loans that were then bundled and sold as investments on secondary market as "mortgage-backed securities"; claims involved alleged violations of Racketeer Influenced and Corrupt Organizations Act (RICO) and unfair competition; claimed involved unconscionable increase in borrowers' debt burden because loans offered interest-only payments or minimum monthly payments at less than amount that would cover interest; court found dissimilarities in purported class members' cases such that class could not be certified; RICO and unfair competition claims fail due to lack of "common course of conduct" - loans made through many independent brokers that had no contact with Countrywide Financial). 

(plaintiff tried to suppress evidence of guilt (DWI); plaintiff contends the trooper violated the Fourth Amendment; court found the trooper had "reasonable suspicion" of unlawful activity; plaintiff was operating an unregistered "farm use" pickup truck late at night after a snow storm; court found reasonable suspicion that the pickup possibly was not being used for farm purposes based on the facts; court affirmed convictions and denied motion to suppress).

(defendant appeals summary judgment in a personal-injury case; defendant collided with a horse on roadway late at night; defendant owns horses; defendant admitted no knowledge of how the horses escaped; defendant admitted she witnessed no problems with the plaintiff's fence; court noted the defendants produced no evidence that plaintiff was negligent; Barrett v. Parker, 757 So. 2d 182 (Miss. 2000), held it could be conceivable for a cow to escape and enter a roadway and the owner not be negligent; court affirmed summary judgment for the plaintiff). 

(sponsored by Sen. Reid (D-NV) with no co-sponsors; represents Administration's stimulus proposal as announced before joint session of Congress on Sept. 8, 2011; extends several stimulus measures beyond 2011 and CRS estimates that bill provides for $35 billion to local governments and $100 billion in various infrastructure improvement programs; bill extends 100 percent bonus depreciation through 2012 and cuts employer portion of Social Security tax in 2012 from 6.2 percent to 3.1 percent on first $5 million of wages paid (presently 4.2 percent for 2011, but would otherwise be 6.2 percent for 2012) which would also apply to earnings of self-employed persons;  OMB projects that bill would add $447 billion to deficit over next ten years; establishes credit that fully offsets employer portion of Social Security tax on wages that exceed wages paid in immediately prior year (up to $50 million of excess wages); creates credit for hiring of unemployed veterans worth up to $9,600; establishes 5.6% surtax on individual taxpayers with MAGI exceeding $500,000 (single and MFS) ($1,000,000 otherwise) beginning in 2013 (adjusted for inflation) which would also apply to capital gains and dividends (which would effectively raise the capital gain rate for such persons from 15 percent to 29.4 percent in 2013 (expiration of 2001 tax cuts would increase capital gain rate to 20 percent, plus 3.8 percent surtax contained in health care legislation plus the 5.6 surtax); result would be a top marginal rate of 55 percent in 2013; bill faces bi-partisan opposition on numerous provisions that have not received bi-partisan support in the past; bill not expected to pass either the Senate or the House). 

(valuation of decedent's 15 percent interest in LLC at issue; estate valued interest at $34,936,000 and, on audit, IRS valued interest at $49,500,000; court determined that proper value was less than what estate valued interest at - $32,601,640; estate entitled to refund of $861,422; in revised opinion; court recalculated LLC units used the correct present value factor to value the present value of a reversion to be received at the end of the fifth year and adjusted the value of the LLC units upward by $3,160,120).

(married couple did not qualify as a real estate professional for purposes of the passive loss rules; husband was barber and wife a nurse; couple owned five rental properties and reported rental income on Schedule E and claimed that he was a real estate professional; husband's own documents showed he spent 1,377 hours barbering and 956 hours on rental activities in 2005 and 1,380 hours on barbering and 886 hours on rental activities in 2006; more time spent on non real estate rental activities; accuracy-related penalty imposed). 

(debtors operated cattle ranch where they raised cattle and fed cattle for others; Chapter 11 filed on Jan. 4, 2010; bank holding security interest in debtors' real and personal property (including livestock) moved for relief from automatic stay; debtors failed to file plan by Feb. 9, 2010 deadline and court lifted stay; bank liquidated all cattle located on debtor's farm - 1,017 head by Mar. 10, 2010; case converted to Ch. 7 on Apr. 6, 2010; trustee filed adversary proceeding opposing discharge under 11 U.S.C. Sec. 727 on basis that 117 head of cattle were unaccounted for and debtors could not satisfactorily explain shortage, claiming that debtors got rid of the missing cattle with intent to hinder, delay or defraud creditors; court denied discharge; trustee's evidence with respect to missing cattle more credible than debtors' testimony). 

(defendants appeal a provision in a contract which was also set out in a deed that created a fee simple determinable; plaintiff, Texas attorney, requested Tenn. attorney to include self-enforcing rights if specific conditions were not fulfilled; plaintiff stated provision was to eliminate the possibility of a lawsuit to protect her rights on the issue; defendants raised defenses of waiver, laches, and impossibility of performance, court rejected; plaintiffs failure to assert right for four years does not constitute a presumed waiver; court noted the literal meaning of "clear" and "unambiguous" language in a contract controls).

(deposit paid to manufacturer for purchase of product via agreement was ultimately returned to taxpayer on termination of agreement because manufacturer not able to supply product; amount returned not includible in income except for interest; return to taxpayer's capital not accession to wealth).

(from December 2007 to June 2009, household income fell 3.2 percent; between June 2009 and Jun 2011, inflation-adjusted median household income declined 6.7 percent to $49,909; from June 2007 to June 2009 average length of time of unemployment increased from 16.6 to 24.1 weeks; from June 2009 to September 2011, average length of time of unemployment increased from 24.1 to 40.5 weeks). 

(defendants move to dismiss plaintiff's complaint charging defendants with manufacturing compost in violation of applicable zoning laws; activity occurred in R-80 district in town "composed of agricultural uses, low density residential areas and certain open spaces..."; ordinance does not refer to "compost," composing," or "manufacturing"; contradictory evidence presented concerning application of state Right-to-Farm Act; no precedent authority for court to rely on; dictionary definition of "compost"; evidence established that raw materials to make compost trucked in from off-site and that volume of various materials utilized to make compost compel conclusion that defendant engaged in manufacturing "compost" in violation of applicable ordinance; defendant's motion to dismiss denied).

(defendant, county officials, required plaintiff to obtain a special use permit (SUP) to hold Hispanic rodeos at his farm while, according to plaintiff, not requiring similarly situated parties from doing the same; plaintiff alleges such disparate treatment violates his Fourteenth Amendment equal protection rights; defendant obtained permanent injunction which barred plaintiff from holding certain gatherings on his farm that required an SUP; plaintiff failed to show any similarly situated persons were treated differently; defendant entitled to summary judgment and action dismissed with prejudice).

(case involves boundary dispute between adjacent landowners; two deeds contained conflicting property line description of adjoining properties; plaintiff's family had owned the property at issue and cabin since 1942; cabin was later expanded which defendant claimed overlapped boundary line; plaintiff sought declaratory relief and title by adverse possession; statute contained five-year timeframe for adverse possession along with five actual occupation, hostile possession, claimed property as own, continuous use for five years and that claimant have paid taxes on property during that time of alleged possession; court found 10 years of tax bills and receipts adequate evidence; jury found plaintiff owned property by deed or adverse possession; appellate court affirmed).

(taxpayer proposed to make charitable contribution of taxpayer's "appropriative interest" in water rights; such interest treated as separate property interest under state law, but contribution of less than taxpayer's entire interest in property not deductible unless it is a remainder interest in annuity or unitrust, taxpayer's undivided interest in entire property, a remainder interest in a farm or residence or a conservation easement; unidentified Rev. Rul. (probably Rev. Rul. 88-37 (overriding interest in oil and gas lease same as underlying working interest)) referenced leading to conclusion that interest at issue not to be treated as distinct property interest from taxpayer's underlying water right and that deduction not allowable; second ruling notes that taxpayer should have argued that contribution was of a conservation easement because conservation easement deductible under partial interest rule because it is considered to be gift of undivided portion of donor's entire interest in subject property (Treas. Reg. Sec. 1.170A-7(b)(1)(ii)).

(plaintiff appeals grant of summary judgment for defendant (engineering firm) that prepared a viability report on coal mine for bank that then financed the coal mine that later went bankrupt; Colorado's economic loss rule  to bar a claim is a question of law; rule focuses on source of duty alleged to have been breached; rule can bar recovery in tort cases; plaintiff made no effort to ensure protection after disclaimed liability; plaintiff made no attempt to allocate risk; Colorado Supreme Court had made clear the rule is "to encourage the parties to build the cost considerations into the contract" or no recovery for economic tort damages; court denied plaintiff's request; court affirmed claims were barred by rule).

(plaintiff was injured while operating a bench table saw; plaintiff sought damages for injury resulting from manufacturer's negligence and breach of an implied warranty of merchantability; plaintiff's expert witness had presented technology to defendant in 2000 that retracts the saw blade upon contact with flesh; defendant argued plaintiff's evidence on design defect was insufficient for jury determination; defendant argued Mass. law required a prima facie evidence on all factors; jury instructions were adequate; court stated Mass. law requires balancing of factors as to reasonableness of design; court found the evidence was sufficient for the case to reach the jury; court affirmed the decision; Note: On  Oct. 5, 2011, the Consumer Product Safety Commission issued an advance notice of proposed rulemaking for performance requirements to address table saw blade contact injuries; data gathered in 2007-08 from an injury cost model projected 67,300 medically treated injuries at a cost of $2.36 billion per year from blade contact).