Hillman v. Commissioner
United States Tax Court
P's S corporation (S) performed management services for real estate partnerships in which P had direct and indirect interests. P received passthrough nonpassive income from S and passthrough passive deductions from the partnerships.
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P's S corporation (S) performed management services for real estate partnerships in which P had direct and indirect interests. P received passthrough nonpassive income from S and passthrough passive deductions from the partnerships. Sec. 469(l)(2), I.R.C., required R to promulgate regulations "which provide that certain items of gross income will not be taken into account in determining income or loss from any activity (and the treatment of expenses allocable to such income)". Pursuant to sec. 469(l), I.R.C., R issued proposed regulations permitting the offsetting of "self-charged" interest…
1Opinion of the Court
OPINION
Gerber, Judge:
In a notice of deficiency addressed to petitioners, respondent determined deficiencies of $294,556 and $309,696 in petitioners’ Federal income tax for the years ended December 31, 1993 and 1994, respectively. We consider here whether petitioners are entitled to treat management fees that generated nonpassive income and passive deductions and were paid and received by passthrough entities in which petitioners held an interest as offsetting self-charged items for purposes of section 469.1
Background 2
Petitioners resided in Bethesda, Maryland, at the time their petition was…
2Cases cited11 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- First Chicago Corporation v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1988
- Occidental Petroleum Corp. v. CommissionerUnited States Tax Court · 1984
- First Chicago Corp. v. CommissionerUnited States Tax Court · 1987
- Trans City Life Ins. Co. v. CommissionerUnited States Tax Court · 1996
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3Cited by19 opinions
- David H. Hillman Suzanne Hillman v. Internal Revenue ServiceCourt of Appeals for the Fourth Circuit · 2001
- Hillman v. Comm'rUnited States Tax Court · 2002
- Pelaez & Sons, Inc. v. CommissionerUnited States Tax Court · 2000
- 15 W. 17th St. LLC v. Comm'rUnited States Tax Court · 2016
- More v. CommissionerUnited States Tax Court · 2000
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