Look-Through Principle Law and Legal Definition

Look through principle is a rule of law of taxation. According to the rule, transfer-gains taxes on real estate are allocated by looking through or beyond an entity which owns real property to determine the beneficial owners of the real property.

The "look through" principle has been enumerated and referred to in certain Tax Appeals Tribunal decisions and Division of Taxation Advisory Opinions. Essentially the principle, or doctrine as it has been called, means looking through an entity which owns real property to determine the beneficial owners of the real property, for example where adjacent or contiguous properties are transferred by two or more entities under common ownership. [Von-Mar Realty Co. v. Tax Appeals Tribunal, 191 A.D.2d 753 (N.Y. App. Div. 3d Dep't 1993)]