Bruce Ely Quoted in Law360 on How States Tax Sales of Interests in Pass-Throughs

Bradley attorney Bruce Ely was quoted in Law360 on a recent case where an energy company's petition to the U.S. Supreme Court argued that Michigan's approach to taxing the gain from the purchase of an out-of-state company yielded a "grossly distorted" result.

Ely said the case could provide insight into the court's thinking on how states can tax sales of interests in pass-throughs. He said that is currently one of the primary questions in the pass-through-entity sector. "This is an area that cries for guidance, not only for corporate sales but pass-through entity sales," noted Ely.

Regarding the primary issues in the petition, he said, the case provides the justices with the opportunity to explain how to handle the intersection of single-sales-factor apportionment and a distortion issue. Ely suggested how this case can help the court to look ahead on managing related cases in the future.

"This is a classic case where alternative apportionment should have been applied," Ely said. He added that he expects several amicus briefs to be filed in support of MMN, saying that he is aware that practitioners are urging "certain professional organizations" to do so.

The full article, “Energy Co. Urges Justices To Review Mich. Tax on Asset Sale,” was published by Law360 on October 27, 2023. (login required)