Instapundit Debunks AP/GOP False Smear of Reid
From Big Tent Democrat
Even Professor Reynolds sees this dog wont hunt:
Senate Democratic Leader Harry Reid collected a $1.1 million windfall on a Las Vegas land sale even though he hadn't personally owned the property for three years, property deeds show.
. . . UPDATE: Reader Anthony Calabrese thinks there's probably less here than the AP story suggests:
I am a long time reader -- also a tax lawyer. While my practice does not involve real estate investments, I think it may be much ado about nothing. Generally, if you transfer property to a company in return for an interest in the company, there is no federal income tax on the transfer. If the company was an LLC (as stated in the media reports), the company was probably a partnership for tax purposes. There would be no LLC level tax as profits and losses would pass through to the partners.
So I can see no real tax issue. The only issue is that Reid might have been hiding his ownership of the property, but holding investment property in an LLC is fairly common in order to protect the owners from torts or bankruptcy. I think this is simply an issue of someone forgetting to file a form.
Good for Professor Reynolds.
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