According to Law360, a D.C. Circuit Court said real estate developer Stephen M. Ross and his partners could not deduct $33 million for land donated to the University of Michigan in 2003 and sustained a 40% penalty.
In a unanimous decision, the three-judge panel said the U.S. Tax Court was right in finding that Ross' partnership RERI Holdings I did not properly substantiate its basis in the donated property, and overstated the value of the donation by more than 400%.
“We agree with the Tax Court that RERI fell short of the substantiation requirements by omitting its basis in the donated property,” Senior Circuit Judge Douglas H. Ginsburg wrote on behalf of the panel.
The Panel Also Upheld The Imposition Of
A 40% Penalty Against RERI,
Saying That It Found No Clear Error In The Court’s Analysis Of The Dispute.
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Read more at: Tax Times blog