Southgate Master Fund, LLC Ex Rel. Montgomery Capital Advisors, LLC v. United States

FINDINGS OF FACT AND CONCLUSIONS OF LAW

ED KINKEADE, District Judge.

This case is a tax dispute between Plaintiff Southgate Master Fund, LLC (“South-gate”) and the United States of America (the “Government”). It is a civil action by the Plaintiff against the United States under 26 U.S.C. § 6226 for readjustment of partnership items. Based on the findings and conclusions set forth today, the Court holds that although Southgate’s claimed capital loss appeared to fall within the literal terms of the statute, the transaction that created the high basis in the stock lacked economic substance and…