Holiday Village Shopping Center ex rel. Mitchell v. United States

OPINION

ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

PHILIP R. MILLER, Judge:

Plaintiff corporation seeks to recover $104,401 in federal income taxes with interest, paid for plaintiffs final tax year ending February 1980. The question at issue is whether a portion of the accelerated depreciation allowances on real property previously deducted by a partnership in which plaintiff was a 99 percent limited partner may be recaptured from plaintiff, pursuant to I.R.C. § 1250,1 upon plaintiff’s liquidating distribution of the partnership interest to its stockholders at a value in excess of the depreciated…