Virginia Historic Tax Credit Fund 2001 LP, et al v. Comr., 639 F.3d 129 (4th Cir. 2011)

(partnership investments used to rehabilitate property designated as "historic" in exchange for state "historic rehabilitation tax credits" held to be disguised sales; state law allows credits of up to 25% of cost to rehabilitate historic property and credits can be distributed among partners in a partnership for credits that are allocated to the partnership; IRS claimed that "partners" were not bona fide but, if they were, transactions were properly characterized as sales; transactions determined to be disguised sales under I.R.C. Sec. 707 and regulations; transfer of "property" involved because credits were "valuable" and had "some of the most essential property rights"; partners faced no risk (were promised refunds if credits weren't delivered; court's decision likely to trigger IRS appeal of decision in Historic Boardwalk Hall LLC v. Comr., 136 T.C. No. 1 (2011)). 

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

RSS​ Facebook Twitter