Garcia v. Commissioner
United States Tax Court
A partner's share of a partnership's loss is deductible in the year of loss to the extent of his adjusted basis in the partnership, and such deduction is not limited under sec. 165 by the possibility of recovery by the partner in a suit brought against remaining partners for mismanagement and fraud.
1Opinion of the Court
Richard E. Garcia and Jeanne M. Garcia, Petitioners v. Commissioner of Internal Revenue, Respondent
Garcia v. Commissioner
Docket No. 32237-88
United States Tax Court
96 T.C. 792; 1991 U.S. Tax Ct. LEXIS 43; 96 T.C. No. 36;
June 5, 1991, Filed
Decision will be entered under Rule 155.
A partner's share of a partnership's loss is deductible in the year of loss to the extent of his adjusted basis in the partnership, and such deduction is not limited under sec. 165 by the possibility of recovery by the partner in a suit brought against remaining partners for mismanagement and fraud.
Dan S. Maccabee, for…
2Cases cited3 opinions
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
- Kugel v. RyanCourt of Appeals for the Second Circuit · 1961
- Garcia v. CommissionerUnited States Tax Court · 1991