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Article: Illinois Appellate Court Rules That Section 338(H)(10) Gain is Non-Business Income.
- Article from:
- Mondaq Business Briefing
- Article date:
- December 8, 2004
CopyrightCOPYRIGHT 2004 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Illinois Appellate Court, in American States Insurance Co., et al. v. Illinois Department of Revenue (No. 1-03-1646, August 27, 2004), 2004 Ill. App. LEXIS 995, affirming the decision of the circuit court, has ruled that a corporation's gain resulting from a s.338(h)(10) election is nonbusiness income. We had reported on the lower court's decision in the June 2003 edition of State Tax Return. Due to legislative changes made earlier this year, this decision may have more impact in other states than in Illinois.
Facts
To recap, the facts of the case are as follows. American States Insurance Company, an Indiana corporation ("ASIC"), was licensed to ...