Harrell v. Commissioner
United States Tax Court
P is a general partner in a limited partnership with 10 or fewer partners. Under the terms of the partnership agreement, certain partnership items are to be distributed either in proportion to the partners' capital contributions, or in accordance with the partners' partnership interests.
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P is a general partner in a limited partnership with 10 or fewer partners. Under the terms of the partnership agreement, certain partnership items are to be distributed either in proportion to the partners' capital contributions, or in accordance with the partners' partnership interests. Pursuant to sec. 704(b), I.R.C. 1954, the partners' distributive shares of those partnership items not covered by the partnership agreement are determined in accordance with the partners' partnership interests. During the year in issue, no items other than those covered in the agreement were allocated to the…
1DissentHamblen, J.
I must disagree with the majority’s approach here and consequently dissent. The majority notes the logic of assuming that the reference to a partner’s share in section 6231(a)(1)(B) is to the partner’s distributive share as determined in the partnership provisions of the Code. The Code provisions should logically be used to interpret the partnership agreement. However, the majority moves away from this more natural and logical interpretation when they suggest that the “same share” test is to be based solely upon the distributive share reflected by the partners on the partnership tax return.
I…
2Cases cited5 opinions
- Greenberg's Express, Inc. v. CommissionerUnited States Tax Court · 1974
- Dellacroce v. CommissionerUnited States Tax Court · 1984
- Century Data Sys. ex rel. California Computer Prods. v. CommissionerUnited States Tax Court · 1986
- 111 West 16 Street Owners, Inc. v. CommissionerUnited States Tax Court · 1988
- Matut v. CommissionerUnited States Tax Court · 1987