N.Y. ALJ Holds Taxpayer’s Motives for Acquiring Stock and How Stock Is Used Irrelevant in Determining Investment Capital

By on May 22, 2013
Posted In Income Tax, New York

A New York administrative law judge recently held in Matter of C.V. Starr & Co., Inc. that income received by a taxpayer from its ownership of common stock was investment income.  In so holding, the ALJ addressed an important issue for many New York taxpayers and concluded that a taxpayer’s motive or intent for acquiring and holding stock and the manner in which the taxpayer used that stock are irrelevant to the determination of whether that stock qualifies as investment capital for corporate income tax purposes.

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Arthur R. Rosen
Arthur R. Rosen focuses his practice on tax planning and litigation relating to state and local tax matters for corporations, partnerships and individuals. Formerly the deputy counsel of the New York State Department of Taxation and Finance, as well as counsel to the governor's Temporary Sales Tax Commission and tax counsel to the New York State Senate Tax Committee, Arthur has also held executive tax management positions at Xerox Corporation and AT&T. He has worked in accounting and law firms in New York City. Read Arthur Rosen's full bio.

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