tax benefit rule (Pennsylvania) · Go Syfert
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tax benefit rule in Pennsylvania

12 Pennsylvania opinions name it 2 courts 2012–2019 0 in the last five years

The cases below were cited by Pennsylvania courts in a sentence that names this issue. Sides come from how each citing opinion treated the case (Syfertize flag on that citation), so a case can appear on both: that is where the law is contested. A red or yellow chip is the case's own overall treatment.

Followed or applied (6)

CaseFollowedCited
Hillsboro National Bank v. Commissionergreen
scotus · 1983 · cited in 5 Pennsylvania opinions naming this issue, 2012–2018
2 sentences

2018See Marshall I , 41 A.3d at 91 (citing Hillsboro Nat'l Bank , 460 U.S. at 377 -79 , 103 S.Ct. 1134 ). 19 Pennsylvania tax law is clear.

2018See Marshall I , 41 A.3d at 91 (citing Hillsboro Nat'l Bank , 460 U.S. at 377 -79 , 103 S.Ct. 1134 ). 19 Pennsylvania tax law is clear.

45
Wirth v. Commonwealthgreen
pa · 2014 · cited in 2 Pennsylvania opinions naming this issue, 2016–2018
2 sentences

2018With respect to the tax benefit rule, the Supreme Court opined that the Department "has seemingly incorporated the rule into Pennsylvania Law through Table 16-2 [of the PIT Guide]." Id. at 848 (emphasis added).

2018Nonetheless, it rejected its application in this particular context: "[A]s the Commonwealth Court did, we easily agree with the Department that the exclusionary arm of the tax benefit rule simply has no application in the instant appeal." Id.

22
Marshall v. Commonwealthgreen
pacommwct · 2012 · cited in 6 Pennsylvania opinions naming this issue, 2016–2018
2 sentences

2018The tax benefit rule "is a product of federal common law, created by our federal courts in response to anomalies arising out of application of the annual accounting system for taxes contained in the IRC." Marshall I , 41 A.3d at 91 .

2016In Marshall, 41 A.3d at 94 , a companion case to Wirth , quoting from John Hancock Financial Services v. United States, 378 F.3d 1302 , 1305 (Fed.Cir.2004), we held that at a minimum, taxpayers seeking to avail themselves of the exclusionary aspect of the tax benefit rule must establish three requirements: "First, there must be a loss that was deducted but did not result in a tax benefit.

16
Commissioner v. Tuftsgreen
scotus · 1983 · cited in 3 Pennsylvania opinions naming this issue, 2012–2018
2 sentences

2018However, given the clear precedent by our Supreme Court refuting the use of the tax benefit rule in this case, I adopt the posture taken by Justice Sandra Day O'Connor in Commissioner of Internal Revenue v. Tufts , 461 U.S. 300 , 317, 103 S.Ct. 1826 , 75 L.Ed.2d 863 (1983) ; i.e., my preference is for "quite a different" approach if we were "writing on a clean slate." 2 The Board issued two orders on remand, an original order dated September 16, 2015, and a corrected order dated November 12, 2015.

2018However, given the clear precedent by our Supreme Court refuting the use of the tax benefit rule in this case, I adopt the posture taken by Justice Sandra Day O'Connor in Commissioner of Internal Revenue v. Tufts , 461 U.S. 300 , 317, 103 S.Ct. 1826 , 75 L.Ed.2d 863 (1983) ; i.e., my preference is for "quite a different" approach if we were "writing on a clean slate." 2 The Board issued two orders on remand, an original order dated September 16, 2015, and a corrected order dated November 12, 2015.

13
John Hancock Financial Services, Inc., and John Hancock Life Insurance Company (Formerly John Hancock Mutual Life Insurance Company) v. United Statesgreen
cafc · 2004 · cited in 2 Pennsylvania opinions naming this issue, 2014–2016
2 sentences

2016In Marshall, 41 A.3d at 94 , a companion case to Wirth , quoting from John Hancock Financial Services v. United States, 378 F.3d 1302 , 1305 (Fed.Cir.2004), we held that at a minimum, taxpayers seeking to avail themselves of the exclusionary aspect of the tax benefit rule must establish three requirements: "First, there must be a loss that was deducted but did not result in a tax benefit.

2014Cf. John Hancock, 378 F.3d at 1305 (noting that, for the tax benefit rule to be applicable, “there must be a loss that was deducted but did not result in a tax benefit.”).

12
Rosenberg v. Commissionergreen
tax · 1991 · cited in 1 Pennsylvania opinions naming this issue, 2012–2012
1 sentence

2012See, e.g., Rosenberg v. C.I.R., 96 T.C. 451 (1991) (refusing to apply tax benefit rule where application of rule would result in deduction expressly prohibited by IRC).

11

Distinguished, questioned or overruled (0)

CaseNegativeCited
No negative-treatment citations attached to this issue in Pennsylvania. Read the followed side critically anyway.

Also cited on this issue (14)

CaseCitedYears
RB Alden Corp. v. Commonwealth green
pacommwct · 2016
2 sentences

2019Upon determining that the $2,000,000 cap was unconstitutional, we eliminated the cap from the NLC provision and remanded the matter to F&R to 6 Alden I also involved application of the tax benefit rule, which this Court declined to adopt. 142 A.3d at 183-84 .

2019Id. at 186 .

22019–2019
Saturday Family LP v. Com. Techspec Inc. v. Com. green
pacommwct · 2017
1 sentence

2018In support, Taxpayer cites this Court's decision in Saturday Family L.P. v. Commonwealth , 148 A.3d 931 (Pa. Cmwlth. 2016), exceptions overruled , 168 A.3d 400 (Pa. Cmwlth. 2017) (en banc), wherein we held that an agency was bound to follow its duly promulgated regulations.

12018–2018
Alice Phelan Sullivan Corporation, a California Corporation v. The United States green
cc · 1967
1 sentence

2018Put differently, the "rule permits exclusion of the recovered item from income [in a subsequent tax year] so long as its initial use as a deduction did not provide a tax saving." Wirth , 95 A.3d at 845-46 (citations omitted) (emphasis added) (quoting Alice Phelan Sullivan Corp. v. United States , 381 F.2d 399 , 401-02 (Ct. Cl. 1967) ).

12018–2018
Saturday Family LP v. Com. Techspec Inc. v. Com. green
pacommwct · 2016
1 sentence

2018In support, Taxpayer cites this Court's decision in Saturday Family L.P. v. Commonwealth , 148 A.3d 931 (Pa. Cmwlth. 2016), exceptions overruled , 168 A.3d 400 (Pa. Cmwlth. 2017) (en banc), wherein we held that an agency was bound to follow its duly promulgated regulations.

12018–2018
Kitko v. Young green
scotus · 2015
1 sentence

2018Houssels v. Pennsylvania , --- U.S. ----, 135 S.Ct. 1405 , 191 L.Ed.2d 362 (2015), I expressed the belief that the tax benefit rule should be applied to recognize the economic reality in this case, i.e. , Marshall lost his entire investment and did not recognize anywhere near the amount attributed to him.

12018–2018
Zoll Lifecor Corp. v. Philips Elecs. N. Am. Corp. green
scotus · 2015
1 sentence

2018Houssels v. Pennsylvania , --- U.S. ----, 135 S.Ct. 1405 , 191 L.Ed.2d 362 (2015), I expressed the belief that the tax benefit rule should be applied to recognize the economic reality in this case, i.e. , Marshall lost his entire investment and did not recognize anywhere near the amount attributed to him.

12018–2018
Marshall v. Commonwealth green
pacommwct · 2012
1 sentence

2018Our lead opinion disposing of those earlier appeals was Marshall v. Commonwealth , 41 A.3d 67 (Pa. Cmwlth.) (en banc) ( Marshall I ), exceptions overruled , 50 A.3d 287 (Pa. Cmwlth. 2012) (en banc) ( Marshall II ), aff'd sub nom.

12018–2018
Glatfelter Pulpwood Co. v. Commonwealth green
pacommwct · 2011
1 sentence

2017Taxpayer first takes exception to the statement in the Majority decision that “[n]othing in the Stipulation 8 Commonwealth v. ACF Industries, Inc., 271 A.2d 273 (Pa. 1970). 9 Glatfelter Pulpwood Co. v. Commonwealth, 19 A.3d 572 (Pa. Cmwlth. 2011), aff’d, 61 A.3d 993 (Pa. 2013). 10 Glatfelter Pulpwood Co. v. Commonwealth, 61 A.3d 993 (Pa. 2013). 8 states that Taxpayer attempted to take a tax deduction in a prior year without tax consequences; nor have any tax returns been filed for the prior years.” R.B.

12017–2017
Commonwealth v. ACF Industries, Inc. green
pa · 1970
1 sentence

2017Taxpayer first takes exception to the statement in the Majority decision that “[n]othing in the Stipulation 8 Commonwealth v. ACF Industries, Inc., 271 A.2d 273 (Pa. 1970). 9 Glatfelter Pulpwood Co. v. Commonwealth, 19 A.3d 572 (Pa. Cmwlth. 2011), aff’d, 61 A.3d 993 (Pa. 2013). 10 Glatfelter Pulpwood Co. v. Commonwealth, 61 A.3d 993 (Pa. 2013). 8 states that Taxpayer attempted to take a tax deduction in a prior year without tax consequences; nor have any tax returns been filed for the prior years.” R.B.

12017–2017
Glatfelter Pulpwood Co. v. Commonwealth green
pa · 2013
2 sentences

2017Taxpayer first takes exception to the statement in the Majority decision that “[n]othing in the Stipulation 8 Commonwealth v. ACF Industries, Inc., 271 A.2d 273 (Pa. 1970). 9 Glatfelter Pulpwood Co. v. Commonwealth, 19 A.3d 572 (Pa. Cmwlth. 2011), aff’d, 61 A.3d 993 (Pa. 2013). 10 Glatfelter Pulpwood Co. v. Commonwealth, 61 A.3d 993 (Pa. 2013). 8 states that Taxpayer attempted to take a tax deduction in a prior year without tax consequences; nor have any tax returns been filed for the prior years.” R.B.

2017Taxpayer first takes exception to the statement in the Majority decision that “[n]othing in the Stipulation 8 Commonwealth v. ACF Industries, Inc., 271 A.2d 273 (Pa. 1970). 9 Glatfelter Pulpwood Co. v. Commonwealth, 19 A.3d 572 (Pa. Cmwlth. 2011), aff’d, 61 A.3d 993 (Pa. 2013). 10 Glatfelter Pulpwood Co. v. Commonwealth, 61 A.3d 993 (Pa. 2013). 8 states that Taxpayer attempted to take a tax deduction in a prior year without tax consequences; nor have any tax returns been filed for the prior years.” R.B.

12017–2017
Dobson v. Commissioner green
scotus · 1944
2 sentences

2016The "tax benefit rule" is not constitutionally mandated, but instead is a product of federal common law that has its genesis in the United States Supreme Court cases of Dobson v. Commissioner, 320 U.S. 489 , 64 S.Ct. 239 , 88 L.Ed. 248 (1943) and Hillsboro National Bank v. Commissioner, 460 U.S. 370 , 103 S.Ct. 1134 , 75 L.Ed.2d 130 (1983).

2016The "tax benefit rule" is not constitutionally mandated, but instead is a product of federal common law that has its genesis in the United States Supreme Court cases of Dobson v. Commissioner, 320 U.S. 489 , 64 S.Ct. 239 , 88 L.Ed. 248 (1943) and Hillsboro National Bank v. Commissioner, 460 U.S. 370 , 103 S.Ct. 1134 , 75 L.Ed.2d 130 (1983).

12016–2016
Nextel Communications of the Mid-Atlantic, Inc. v. Commonwealth of PA green
pacommwct · 2015
1 sentence

2016Taxpayer makes that claim on a number of alternative bases contending that: • gain from a sale of the partnership interest is "nonbusiness income" under Section 401(3)2.(a)(1)(D) of the Tax Reform Code of 1971 (Code), 1 not "business income" under Section 401(3)2.(a)(1)(A) of the Code; 2 • the gain must be excluded from its apportionable tax base under the doctrines of multiformity or unrelated assets; • the gross proceeds from the sale of the partnership interest should be sourced to New York, the state in which it is headquartered, for purposes of calculating the sales factor of its corporat

12016–2016
Commonwealth v. Rigling green
pacommwct · 1980
2 sentences

2012Consequently, the "interest" payments to the lender would be treated for tax purposes as nondeductible dividends that would not shelter the aforementioned $121.6 million of Partnership income. .The application of the tax benefit rule to reflect the economic reality of a taxable event is a substance over form approach, which is supported by this Court's decision in Commonwealth v. Rigling, 48 Pa.Cmwlth. 303 , 409 A.2d 936 (Pa.Cmwlth.1980), wherein we held that the basis provisions of the PIT could not be applied to impose a tax when there is in fact no income. .

2012Consequently, the "interest" payments to the lender would be treated for tax purposes as nondeductible dividends that would not shelter the aforementioned $121.6 million of Partnership income. .The application of the tax benefit rule to reflect the economic reality of a taxable event is a substance over form approach, which is supported by this Court's decision in Commonwealth v. Rigling, 48 Pa.Cmwlth. 303 , 409 A.2d 936 (Pa.Cmwlth.1980), wherein we held that the basis provisions of the PIT could not be applied to impose a tax when there is in fact no income. .

12012–2012
Commonwealth v. Columbia Steel & Shafting Co. neutral
pactcompldauphi · 1951
1 sentence

2012Accordingly, I would grant Marshall’s exceptions to the Majority’s decision which challenge: (1) application of the language in Section 103.13 of Revenue’s Regulations relating to “conversion of property into cash or other property”; (2) the interpretation of Section 103.13 of the Regulations to include the outstanding purchase money mortgage within the amount realized; (3) the Majority’s conclusion that Rigling and Commonwealth v. Columbia Steel & Shafting Co., 83 Pa. D. & C. 326 (Dauphin 1951), exceptions dismissed, 62 Dauph. 296 (Dauphin 1952), do not compel a different result; (4) the fail

12012–2012

Statutes the citing opinions construe

USC § 26u.s.c.1001 (4) USC § 42u.s.c.1983 (4) USC § 26u.s.c.111 (3) USC § 26u.s.c.61 (3)

Counted by distinct opinions that both name this issue and are annotated to the section; sections every opinion cites regardless of issue are not filtered here, so read the counts against the total above.

Where else courts name it

PA 12 (2012–2019) CA 5 (1984–2012) MI 3 (2011–2024) CT 3 (1998–2017) NJ 3 (1993–1995) SD 2 (1993–2014)

Opinions by the citing court's state. A doctrine retained in one state and abandoned in another shows up here as a year span that stalls.

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