Does the Illinois sale of assets by gaming licensees surcharge apply to me?

If you incurred a federal tax liability on income from the sale of assets by an organization licensed under the Illinois Horse Racing Act of 1975 and/or a gaming organization licensed under the Illinois Gambling act, you may owe a surcharge.

The surcharge doesn't apply if any of the following are true:

1. The gaming license, organization license, or racetrack property was transferred due to any of the following:
• bankruptcy or debt adjustment;
• cancellation or termination of the license by the Illinois Gaming Board or the Illinois Racing Board;
• a determination by the Illinois Gaming Board that transfer of the license is in the best interests of Illinois gaming;
• the death of an owner of the equity interest in a licensee;
• the acquisition of a controlling interest in the stock or substantially all the assets of a publicly traded company;
• a transfer by a parent company to a wholly owned subsidiary; or
• the transfer or sale to or by one person to another person where both persons were initial owners of the license when it was issued.
2. The controlling interest in the license or racetrack property is transferred to lineal descendents or as a result of a transaction in accordance with I.R.C. Section 351; and no gain or loss is recognized.
3. Live horse racing was not conducted in 2010 at a racetrack located within 3 miles of the Mississippi River under a license issued under the Illinois Horse Racing Act of 1975.
4. the transfer of a gaming license, organization license, or racetrack property is carried out by a person other than the initial licensee to receive the license.