EVERYTHING WILL BE DIFFERENT...:

FBI probing Rep. Miller's land sales: The Diamond Bar congressman made millions but avoided taxes by saying the sales were forced. Cities that were the buyers deny it (William Heisel, January 31, 2007, LA Times)

The FBI is investigating Rep. Gary Miller (R-Diamond Bar) for a series of land transactions in which he avoided paying capital gains taxes after saying he had been forced to sell under eminent domain in Monrovia and Fontana.

The federal investigation was initiated after The Times reported in August that officials in both cities denied that they had acquired Miller's property using eminent domain, which enables governments to buy land for certain purposes even if owners do not want to sell.

After a land sale in Monrovia in 2002 and two subsequent sales in Fontana in 2005 and 2006, Miller claimed an exemption under Internal Revenue Code Section 1033, which grants those forced to sell property through eminent domain at least two years to reinvest the profits without paying capital gains taxes.

Miller's repeated use of the forced-sale exemption has enabled deferment of capital gains taxes through at least 2009.

Dick Singer, a spokesman for Monrovia, said federal agents had interviewed city officials and requested a videotape from a City Council meeting in 2000 cited by The Times in which Miller asked city officials four times to buy his land.

Thank goodness we threw the bums out....

Posted by Orrin Judd at January 31, 2007 9:49 AM