In Tempel v. Commissioner, decided in April 2011, the Tax Court came to a number of important conclusions about sales of state income tax credits that occurred shortly after the credits had been received. The gain was held to be capital gain (with the court implicitly concluding that the credits...

In a 2011 decision, Tempel v. Commissioner, the Tax Court had held, among other things. that gain on sales of state income tax credits was capital gain. In a Chief Counsel Advice released later in the same year, the IRS accepted the result, and most of the analysis, of Tempel, and it also...