Estate of Charles T. Franklin, Deceased v. Commissioner of Internal Revenue

SNEED, Circuit Judge:

This case involves another effort on the part of the Commissioner to curb the use of real estate tax shelters. 1 In this instance he seeks to disallow deductions for the taxpayers’ distributive share of losses reported by a limited partnership with respect to its acquisition of a motel and related property. These “losses” have their origin in deductions for depreciation and interest claimed with respect to the motel and related property. These deductions were disallowed by the Commissioner on the ground either that the acquisition was a sham or that the entire acquisition…