Washington (Oct. 14, 2002) -- The Internal Revenue Service has reaffirmed its 1999 conclusion that a taxpayer may not deduct rent or interest paid or incurred in connection with a Lease-In/Lease-Out Transaction, also known as a "LILO" transaction."This ruling is part of our larger effort to respond to abusive transactions," said IRS commissioner Charles O. Rossotti. "Abusive tax shelters unfairly place more tax burden on other taxpayers."
"We have refined our analysis of LILOs based on information from actual transactions and have presented a legal position that gives clear guidance to the field and taxpayers alike explaining why we believe these transactions do not work," said IRS chief counsel B. John Williams, Jr. "Our primary position is that LILOs, in substance, confer only a future interest in property to the U.S. taxpayer, rather than a current leasehold interest."
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access