United States Federal Circuit
Consolidated Edison Co. of NY v. US, 2012-5040
In appeal by US of tax refund granted to plaintiff by the Federal Claims Court for amounts paid by plaintiff for multiple deductions pertaining to a lease-in/lease-out (LILO) tax shelter transaction, that was originally denied by the IRS, judgment granting refund is reversed and remanded, where: 1) plaintiff's claimed deductions must be disallowed because there was a reasonable likelihood that the tax-indifferent entity in the LILO Transaction (the lessor of the master lease) would exercise its purchase option at the conclusion of the plaintiff's sublease, thus rendering the master lease illusory; and 2) plaintiff is not entitled to interest deductions.
Appellate Information
- Decided 01/09/2013
- Published 01/09/2013
Judges
- DYK
Court
- United States Federal Circuit