Aciu v. Director, Division of Taxation, No. 020999-2010; Tax Court; opinion by Menyuk, J.T.C.; decided and approved for publication October 9, 2012. DDS No. 35-5-7929 [17 pp.]

At issue is whether defendant, the director of the Division of Taxation, properly denied a refund of gross income taxes claimed on account of an exclusion of 50 percent of the capital gain on the sale of certain qualified small business stock. The exclusion is expressly permitted by federal tax law, namely, I.R.C. § 1202.