Crescent Ex-President Not Owner Of Interest, Tax Court Rules

Law360, New York (December 2, 2013, 9:18 PM EST) -- The former president of real estate developer Crescent Resources LLC is not the taxable owner of $2.42 million in disputed interest in the company, the U.S. Tax Court ruled Monday.

Arthur W. Fields, a Charlotte, N.C., resident who managed Crescent from 2006 until May 2009, had a contractual right to a 2 percent interest in the company provided he remained there through Sept. 7, 2009. Crescent paid Fields $2.42 million in 2008 and 2009 to offset potential income tax liability stemming from the interest, but the...
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