This advisory discusses a recent U.S. Tax Court ruling on a combination of LILO and SILO transactions that were supposed to generate lease and depreciation deductions. The IRS attacked the deductions primarily under what it called the substance-over-form doctrine, and secondarily under the economic substance doctrine. The taxpayer won the economic substance doctrine issue, but lost the substance-over-form issue. There are several lessons here for taxpayers.
The full advisory is provided on the Alston & Bird website: http://www.alston.com/advisories/fed-tax-sept-2013/
Written by Jack Cummings, Partner, Tax | Alston & Bird LLP