WASHINGTON - “Today’s decision by the United States District Court for the Middle District of North Carolina affirms that, notwithstanding vigorous and complicated paper shuffling, to have a tax deduction for lease or interest expense, you must actually incur them. And to incur them, you must have a genuine lease and genuine indebtedness, respectively. In BB&T vs. United States of America, the District Court found that the Lease-In, Lease-Out tax shelter involved neither, and therefore does not result in the tax deductions claimed by those who participate in it.”
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07-002