The petitioners got a refund of $54,507 in state (NY) income tax in 2008. The refund was attributable to refunded state income tax credits which were based on state real property taxes that entities paid in which the petitioners had an ownership interest. The property tax was paid and deducted at the entity level which decreased the entity income that ultimately passed through to the taxpayers, resulting in a lower tax liability. The Court, agreeing with the IRS, determined that the petitioners received a tax benefit from the credits and, as such, the credits were income to them. The court cited its prior decision in Maines v. Comr., 144 T.C. No. 8 (2015), which involved similar facts. Elbaz v. Comr., T.C. Memo. 2015-49.