Mack v. Comm'r
United States Tax Court
In 2011 P-H was a partner of a New York partnership, which reported P-H's distributive share of partnership income as $479,743. On their timely filed 2011 tax return, Ps reported only $75,000 of the income from P-H's partnership. Ps contend that P-H's fiduciary duties under State law required him to use the remainder to pay partnership expenses to keep the firm from failing.
Read the full summary
In 2011 P-H was a partner of a New York partnership, which reported P-H's distributive share of partnership income as $479,743. On their timely filed 2011 tax return, Ps reported only $75,000 of the income from P-H's partnership. Ps contend that P-H's fiduciary duties under State law required him to use the remainder to pay partnership expenses to keep the firm from failing. Held: Ps are liable for income tax on P-H's full distributive share of partnership income for 2011. Any payment of partnership expenses by P-H was a contribution to capital, and he can deduct his share of the…
1Opinion of the Court
WALTER S. MACK, JR. AND CONSUELO C. MACK, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Mack v. Comm'r
Docket No. 7186-14
United States Tax Court
T.C. Memo 2016-229; 2016 Tax Ct. Memo LEXIS 227; 112 T.C.M. (CCH) 671;
December 19, 2016, Filed
An appropriate order will be issued granting respondent's motion, and decision will be entered under Rule 155.
In 2011 P-H was a partner of a New York partnership, which reported P-H's distributive share of partnership income as $479,743. On their timely filed 2011 tax return, Ps reported only $75,000 of the income from P-H's partnership. Ps…
2Cases cited8 opinions
- HIGBEE v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- Sundstrand Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1992
- Neonatology Assocs., P.A. v. Comm'rUnited States Tax Court · 2000
- United States v. BasyeSupreme Court of the United States · 1973
3 more not listed; retrieve them via the Exa API.