Gefen v. Commissioner
United States Tax Court
Petitioner-wife invested in a limited partnership that purchased and leased computer equipment. She also executed a limited partner guarantee by which she assumed personal liability for her pro rata share of the partnership's recourse indebtedness. Held, the partnership's transactions were supported by economic substance. Held, further, the partnership's purchase and lease of the computer equipment were activities that were engaged in for profit.
Read the full summary
Petitioner-wife invested in a limited partnership that purchased and leased computer equipment. She also executed a limited partner guarantee by which she assumed personal liability for her pro rata share of the partnership's recourse indebtedness. Held, the partnership's transactions were supported by economic substance. Held, further, the partnership's purchase and lease of the computer equipment were activities that were engaged in for profit. Held, further, petitioner-wife was entitled to include in her partnership basis her pro rata share of the partnership's recourse and nonrecourse…
1Opinion of the Court
STERRETT, Chief Judge:
By notice of deficiency dated April 27, 1982, respondent determined deficiencies in petitioners’ Federal income taxes for the calendar years 1977, 1978, and 1979 in the amounts of $10,513.66, $8,376.65, and $9,420.60, respectively. By amendment to his answer, respondent alleged that the correct deficiency for 1977 is $10,479.00, and that the deficiencies for 1978 and 1979 should be increased in the amounts of $7,692.35 and $1,546.40, respectively. The deficiencies resulted from respondent’s determination that petitioners were not entitled to deduct losses and interest…
2Cases cited30 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- E.A. Brannen and Frances K. Brannen v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1984
- Brannen v. CommissionerUnited States Tax Court · 1982
- Allen v. CommissionerUnited States Tax Court · 1979
25 more not listed; retrieve them via the Exa API.
3Cited by99 opinions
- Howard Gilman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1991
- Levy v. CommissionerUnited States Tax Court · 1988
- Larsen v. CommissionerUnited States Tax Court · 1987
- Ronnen v. CommissionerUnited States Tax Court · 1988
- Melvin v. CommissionerUnited States Tax Court · 1987
94 more not listed; retrieve them via the Exa API.