The three principal theories that could be used by the Service to challenge tax-free treatment are (1) the partners do not hold the property for a qualified use, (2) the step-transaction doctrine, and (3) the partners' cotenancy
in the property is a partnership.
Reliance on notions of "communities of interest," mortgagees as trustees, and cotenancy
law analogies in this context cannot be sustained.
coparceny described the cotenancy
held by the daughters of a decedent lacking a male heir.
However, attributes of the cotenancy
or a profile of the cotenants may provide evidence that a partition action will exceed typical costs.
This model of cotenancy
as an instrument of competition was further elaborated in Smith (1988, 1993) and tested experimentally in the context of a natural gas pipeline network funded by the Federal Energy Regulatory Commission (Rassenti, Reynolds and Smith 1994).
In 1990, the plaintiff commenced an action alleging title by adverse possession against his cotenants.(56) The defendants, relying on rationale similar to Kolb, argued that the adverse possession claim could not be maintained until 1992, twenty years after the death of their father and the creation of the cotenancy
.(57) The Third Department rejected this argument, stating that "[i]f adverse possession is established, then the presumption that plaintiff held the land in question for the benefit of the other tenants in common, so that his claim has not yet ripened, will be rebutted."(58)
sovereign trustees having cotenancy
interests in a shared asset (such as
For example, Alabama passed a statute that gave co-owners the right to purchase the interests of the co-owner who petitioned for partition (but this provision was smack down in 1985).(265) Other states allow courts to order a partial partition, thus respecting the desires of those who wish to remain in cotenancy
.(266) Both of these reforms seem to us to be aimed at ameliorating the community-destroying effect of the current law of partition.(267) But the reforming states are not careful enough about the distributive effects of the reforms.
Such shared interests are best described as a sovereign cotenancy
"The space offers cotenancy
, heavy pedestrian traffic and proximity to several subway lines, as well as Banana Republic, Club Monaco, Steve Madden, Victoria's Secret and Dean & DeLuca stores all nearby.
If it is determined that a tax cotenancy
is in the taxpayers' best interests, then a form of ownership under state law must be chosen that will be respected as such for federal tax purposes.
and Joint Ownership [sections] 38 (1995) (citing New Haven Trolley & Bus Employees Credit Union v.