Petition Filed for Rehearing of Historic Boardwalk Case

Following the reversal by the Third Circuit Court of Appeals of the Tax Court’s decision in the Historic Boardwalk case, the taxpayer has filed a petition for a rehearing or rehearing en banc of the Historic Boardwalk Hall case. The taxpayer’s brief in support of the petition asserts that the Third Circuit Court of Appeals misapplied the reasoning of the U. S Supreme Court case of Commissioner v. Culbertson. Under Culbertson, a partnership exists if, based on the totality of the facts and circumstances, it is determined that “the parties in good faith and acting with a business purpose intended to join together in the present conduct of the enterprise.” The brief also contends that the Court of Appeals made a fundamental error in treating the historic tax credits as a return of capital. It is not common for cases to be reheard especially when there was no dissent on the panel. If the petition is denied the only appeal remaining is to the United States Supreme Court.

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