New York Properly Taxed Funds Earned in Like-Kind Property Swap

New York was right to tax money 16 family members made when the LLC they owned together completed a nontaxable like-kind change of properties, a state judge ruled in an opinion released Thursday.

The taxpayers failed to show that certain expenses were sufficiently related to the exchange of their office building in Brooklyn for another in Las Vegas to justify reducing their taxable gains for 2015, New York Division of Tax Appeals Administrative Law Judge Jennifer L. Baldwin ruled.

As a result of the ruling, some of the taxpayers owe about $140,000 in additional tax and penalties. Others, who ...