A California couple is liable for a $125,000 state income tax bill after the Office of Tax Appeals held they mischaracterized debt relief they received in exchange for interest in two companies.
The couple didn’t meet their burden of proving error in the state’s computation of the amount realized on the sales, Administrative Law Judge Eddy Y.H. Lam wrote for the panel in a nonprecedential opinion posted Tuesday.
Thomas and Susan Utman sold their one-third membership interest in a partnership called Newport Marina LLC to another LLC member in exchange for indemnification from liabilities the company owed under a loan ...
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