AmBase Corp. v. United States

AmBase purchased Carteret, a federally chartered stock savings bank or thrift, and then filed consolidated income tax returns with Carteret. The dispute in this appeal related to AmBase's 1992 consolidated federal income tax return. The court held that the district court had subject-matter jurisdiction and affirmed its grant of AmBase's claimed deduction to the extent that it offset Carteret's post-seizure income for the 1992 tax year. Further, the court concluded that the district court should grant AmBase's claimed deduction to the extent that it derived from Carteret's post-seizure bad debts for the 1992 tax year. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "AmBase Corp. v. United States" on Justia Law