Skouti

Filed 2/11/

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

THIRD APPELLATE DISTRICT

(Sacramento) ----

AHMAD SKOUTI et al., C100135

Plaintiffs and Appellants, (Super. Ct. No. 34-2020- 00278768-CU-MC-GDS) v.

FRANCHISE TAX BOARD,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Sacramento County, Christopher E. Krueger, Judge. Affirmed.

Fennemore Dowling Aaron, J. Jackson Waste and Joseph J. Doerr for Plaintiffs and Appellants.

Rob Bonta, Attorney General, Tamar Pachter, Assistant Attorney General, Craig D. Rust, Jennifer T. Henderson and Lauren E. Freeman, Deputy Attorneys General, for Defendant and Respondent.

1 Plaintiffs Ahmad Skouti and Faten M. Kour purchased a citrus orchard with proceeds from a jury award for the destruction of their grapevines. Internal Revenue Code section 1033 (26 U.S.C. § 1033 (section 1033)) permits nonrecognition of gain from involuntary conversions of property, like the one here, if the taxpayer “purchases other property similar or related in service or use to the property so converted.” (§ 1033, subd. (a)(2)(A).) The Franchise…