Brand v. Commissioner
United States Tax Court
Petitioners were limited partners in various limited partnerships (the partnerships) which were engaged together in a joint farming venture with another limited partnership. Petitioners guaranteed repayment of certain loans taken out by the partnerships for the benefit of the joint venture. For the years in issue, petitioners deducted losses of the partnerships in excess of their cash contributions to the partnerships.
Read the full summary
Petitioners were limited partners in various limited partnerships (the partnerships) which were engaged together in a joint farming venture with another limited partnership. Petitioners guaranteed repayment of certain loans taken out by the partnerships for the benefit of the joint venture. For the years in issue, petitioners deducted losses of the partnerships in excess of their cash contributions to the partnerships. Held, petitioners were not at risk under sec. 465(b), I.R.C. 1954, for the amount of partnerships' loans they guaranteed; thus, they may not deduct losses of the partnership in…
1Opinion of the Court
OPINION
Fay, Judge:
Respondent determined deficiencies in petitioners’ Federal income tax as follows:
Year Deficiency
Hugh M. Brand and Elizabeth G. Brand 1976 $439
Foster W. Polley and Reva B. Polley 1976 4,513
William B. Simpson and Katherine Simpson 1976 1,883
Louis J. Hendrickson and Phyllis M. Hendrickson 1976 11,045
Kenneth L. Cameron 1976 and Debra C. Cameron 1977 1978 Í — 1 £>- 4^ CO CO 4^ O
Michael T. Michelas O 1-H ^ H lO O) CO CO CO tr- CO t*Ci Ci r-f r*H
Raymond Heard and Sharlene Heard 1976 1977 1978 3,730 714 208
Charles M. Ortiz and Bonita K. Ortiz 1977 2,387
Estate of Wilmer Allen and…
2Cases cited11 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Johnny R. Austad and Dorothy Austad, His Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1967
- MacK Financial Corp. v. ScottIdaho Supreme Court · 1980
- The Equitable Trust Company v. Bratwursthaus Management Corporation, and Francis J. Plombon and Patricia A. PlombonCourt of Appeals for the Fourth Circuit · 1975
- Industrial Investment Corp. v. RoccaIdaho Supreme Court · 1979
6 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Abramson v. CommissionerUnited States Tax Court · 1986
- Gefen v. CommissionerUnited States Tax Court · 1986
- Larsen v. CommissionerUnited States Tax Court · 1987
- Capek v. CommissionerUnited States Tax Court · 1986
- Coleman v. CommissionerUnited States Tax Court · 1986
30 more not listed; retrieve them via the Exa API.