Holladay v. Commissioner
United States Tax Court
Petitioner formed a joint venture with Babcock Co. to complete development of an apartment complex. Babcock Co. previously had obtained the land and begun construction. Petitioner agreed to provide an equity contribution of $ 750,000 and loans up to $ 1 million. Each party agreed to share equally the burden of providing whatever additional financing might be necessary.
Read the full summary
Petitioner formed a joint venture with Babcock Co. to complete development of an apartment complex. Babcock Co. previously had obtained the land and begun construction. Petitioner agreed to provide an equity contribution of $ 750,000 and loans up to $ 1 million. Each party agreed to share equally the burden of providing whatever additional financing might be necessary. With regard to equity cash distributions, the parties agreed to split the first $ 100,000, to distribute the next $ 150,000 to Babcock Co., and thereafter to share equally. Notwithstanding this nearly equal division of economic…
1Opinion of the Court
Dawson, Judge:
Respondent determined deficiencies in the Federal income taxes of petitioners as follows:
Year Deficiency Year Deficiency
1968 . $38,914 1971 . $120,154
1969 . 97,519 1972 . 260,727
1970 . 11,403 1973 . 126,690
After concessions by respondent, the sole issue1 for our decision is whether the allocation to petitioner of all the taxable losses of the Kings Creek Joint Venture for the taxable years 1970 through 1973 is a bona fide allocation within the meaning of section 704.2
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. The stipulation of facts and…
2Cases cited4 opinions
- Norman and Arlene Rodman, Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Appellee-Cross-AppellantCourt of Appeals for the Second Circuit · 1976
- Orrisch v. CommissionerUnited States Tax Court · 1970
- Kresser v. CommissionerUnited States Tax Court · 1970
- Frank E. Sellers, Transferee of the Assets of Norpaco Builders, Inc., Transferor v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1979
3Cited by22 opinions
- Davis v. CommissionerUnited States Tax Court · 1980
- Goldfine v. CommissionerUnited States Tax Court · 1983
- Cirelli v. CommissionerUnited States Tax Court · 1984
- Boynton v. CommissionerUnited States Tax Court · 1979
- Durand A. Holladay and Blanche F. Holladay v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
17 more not listed; retrieve them via the Exa API.