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NOTES 633 Tax Lawyer, Vol. 55, No. 2 NOTE TAXPAYERS CAN TREAT THE PREMIUM PAID FOR EXPECTED PROPERTY RIGHTS AS THE COST BASIS OF THE LATER-ACQUIRED RIGHTS: GLADDEN V. COMMISSIONER In Gladden v. Commissioner,1 the Court of Appeals for the Ninth Circuit held that when “a purchaser pays a premium for land based on a realistic expectation that water rights will attach to that land in the future, the purchaser may, upon sale of the later-acquired water rights, claim a cost basis [in such rights] equal...

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