Six-Year Statute of Limitations Does Not Apply to Deficiency from Overstated Basis
In Home Concrete & Supply LLC v. United States, Supreme Court Docket No. 11-139 (April 25, 2012), the U.S. Supreme Court stepped in to resolve a hotly contested dispute as to whether an overstatement of basis in property resulting in an understatement of gain received from its sale would be sufficient to extend the normal 3-year statute of limitations set forth in 26 U. S. C. ??6501(a) to a 6-year statute of limitations set forth in 26 U. S. C. ??6501(e). Following Colony, Inc. v. Commissioner, 357 U. S. 28 (1958), the Home Concrete Supreme Court held that 26 U. S. C. ??6501(e) does not apply to an overstatement of basis and, hence, the 6-year period does not apply.