Johnsen v. Commissioner
United States Tax Court
L, a limited partnership, was formed in April 1976 to develop an apartment project. P became a limited partner in July 1976. Construction of the project began in September 1976 and was completed in October 1977. During 1976, no tenants moved into the project, and L received no rentals.
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L, a limited partnership, was formed in April 1976 to develop an apartment project. P became a limited partner in July 1976. Construction of the project began in September 1976 and was completed in October 1977. During 1976, no tenants moved into the project, and L received no rentals. Held: 1. L was not carrying on a trade or business as of Dec. 31, 1976, within the meaning of sec. 162, I.R.C. 1954. Goodwin v. Commissioner, 75 T.C. 424 (1980), affd. without published opinion 691 F.2d 490 (3d Cir. 1982), followed. 2. P is entitled to deduct his distributive share of the construction loan…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency of $3,700 in the petitioners’ Federal income tax for 1976. After a concession by the petitioner, the issues remaining for decision are: (1) Whether a limited partnership formed to develop an apartment project was carrying on a trade or business as of December 31,1976; (2) if the limited partnership was not carrying on a trade or business during 1976, whether the petitioner may deduct under section 212(1) or (2) of the Internal Revenue Code of 19541 his share of loan commitment fees and management and guarantee fees incurred by the…
2Cases cited51 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- W. Horace Williams, Sr., and Viola Bloch Williams v. United StatesCourt of Appeals for the Fifth Circuit · 1957
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3Cited by60 opinions
- Jackson v. CommissionerUnited States Tax Court · 1986
- Levy v. CommissionerUnited States Tax Court · 1988
- Finoli v. CommissionerUnited States Tax Court · 1986
- Durkin v. CommissionerUnited States Tax Court · 1986
- John K. Johnsen Frances Johnsen, Cross-Appellants v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Sixth Circuit · 1986
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