In Uncategorized on 02/06/2013 at 17:03

Second Circuit weighed in on an oldie-but-goodie, Alphonso v. Com’r., 137 T.C. 247, reversing Judge Chiechi in Alphonso v. Com’r, Docket No. 11-2364-ag, dated 2/6/13. For background, see my blogpost “A New York Cooperative Conundrum”, 3/18/11.

Thanks and praise to Eric Levine and that generous purveyor of pizza and pasta to hungry attorneys and accountants at the joint ABA-NYSBA Committee on Taxation of Cooperatives and Condominiums, Charlie Baller, for winning this one.

Essentially, New York’s crazy-quilt of rights embodied in cooperative apartment corporations’s certificates of incorporation, by-laws, shares, proprietary leases and house rules, which concatenation our State’s highest court has called sui generis, and as a result of our State’s lower courts wrestling with same, equals a property right sufficient to pass the Section 165(c)(3) test for casualty loss deductibility.

While of great interest to New York practitioners, the case is of limited use elsewhere, as State law dictates property rights.

And as for the victorious Ms Alphonso and her 200 fellow tenant-shareholders, IRS may have lost the battle, but there remains the war over whether the property damage was indeed a casualty loss; and that Second Circuit expressly said they did not decide.

Stay tuned.

  1. […] Lew Taishoff, a veteran New York attorney, commented: […]


Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: