Vecchio v. Commissioner
United States Tax Court
P, E, and B were partners in a partnership. The partnership agreement allocated operating income 47.5 percent to P, 49 percent to E, and 3.5 percent to B. The partnership agreement allocated a disproportionately large share of losses and depreciation to E from 1974 through 1978, so that at the beginning of 1980, E had a negative capital account balance of $ 1,251,898. P and B had positive capital account balances.
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P, E, and B were partners in a partnership. The partnership agreement allocated operating income 47.5 percent to P, 49 percent to E, and 3.5 percent to B. The partnership agreement allocated a disproportionately large share of losses and depreciation to E from 1974 through 1978, so that at the beginning of 1980, E had a negative capital account balance of $ 1,251,898. P and B had positive capital account balances. As a result of a dispute between E and P, E filed suit in State court. On May 8, 1980, the State court ordered P to purchase E's interest in the partnership on or before Sept. 30,…
1Opinion of the Court
Parker, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for the taxable year 1980 in the amount of $286,693. In an amendment to answer, respondent later asserted an increased deficiency of $349,198.25.
After concessions,1 the primary issue to be decided is the amount of gain resulting from the sale of real property by Johanna Properties Partnership that properly is allocable to petitioner and includable in his income in the taxable year 1980. In reaching our decision on the primary issue, we must initially determine how the gain should be allocated among the three…
2Cases cited10 opinions
- United States v. BasyeSupreme Court of the United States · 1973
- Foxman v. CommissionerUnited States Tax Court · 1964
- Elrod v. CommissionerUnited States Tax Court · 1986
- Orrisch v. CommissionerUnited States Tax Court · 1970
- Harris v. CommissionerUnited States Tax Court · 1974
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3Cited by22 opinions
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- Estate of Melvin W. Ballantyne, Deceased, Jean S. Ballantyne, Independent Jean S. Ballantyne, Court. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 2003
- Holdner v. Comm'rUnited States Tax Court · 2010
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