Krumpotich
Krumpotich v. Franchise Tax Board
Opinion
Opinion
Lillie, J.
— Franchise Tax Board (Board) appeals from a judgment entered following a court trial adjudging recovery from the Board by John L. Krumpotich and Claire M. Krumpotich (plaintiffs/respondents) the principal sum of $66,863.00 plus interest and costs of suit. The Board contends the court erred in determining that plaintiffs were entitled to claim a tax credit authorized by Revenue and Taxation Code former section 17061.5.
Facts and Procedural History
On January 14,1992, plaintiffs filed their first amended complaint against the Board for refund of personal income taxes. They alleged they were entitled to a refund of income taxes for tax year 1987 pursuant to the provisions of the Revenue and Taxation Code former section 17061.5.
For trial, the parties stipulated to most of the facts as follows:
In 1983 the plaintiffs incorporated the Krumpotich Family Corporation (corporation) and commenced doing business in California. Plaintiffs were shareholders of the corporation, and the corporation’s sole asset during its existence was a parcel of farm real property located in Santa Clara County. The corporation was not ap “S” corporation.