Principal Life Insurance Company and Subsidiaries v. United States

Tax; Cross-motions for partial summary judgment; Refund of taxes relating to previously taxed income (PTI); Income from controlled foreign corporation; Partnership — Culbertson-, Existence of partnership with bona fide partners raised questions of fact; Debt/equity analysis; Review of debt/equity factors; Existence of partnership raises questions of fact; Section 705(a)(1)(B) — basis adjustment; Whether basis of plaintiffs’ interest in LLCs must be increased by distributive share of PTI distributions; Application of section 705 and Subpart F provisions raises questions of fact.

OPINION

ALLEGRA,…