Kimmelman v. Commissioner
United States Tax Court
P was a limited partner in five limited partnerships. In 1971 or 1972, each of such partnerships invested in real estate improved by unprofitable vineyards. The partnerships held the land for resale and rented the vineyards.
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P was a limited partner in five limited partnerships. In 1971 or 1972, each of such partnerships invested in real estate improved by unprofitable vineyards. The partnerships held the land for resale and rented the vineyards. In addition, each limited partnership made a quaranteed payment within the meaning of sec. 707(c), I.R.C. 1954, to the general partner for services performed by the general partner in connection with organizing and syndicating the partnership. 1. Held, to be deductible, a guaranteed payment under sec. 707(c) made by a partnership engaged in a trade or business must meet…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined deficiencies in the petitioner’s Federal income taxes as follows:
Year Deficiency
1970. $10,026
1971. 28,199
1972. 322
The parties have settled or conceded certain adjustments. The issues left for decision are: (1) Whether a guaranteed payment within the meaning of section 707(c) of the Internal Revenue Code of 19541 made by a partnership engaged in a trade or business is deductible even though it does not meet the requirements of section 162(a); (2) whether certain guaranteed payments were ordinary and necessary expenses or capital expenditures; (3)…
2Cases cited12 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Kroll v. CommissionerUnited States Tax Court · 1968
- McDonald v. CommissionerSupreme Court of the United States · 1944
- Cagle v. CommissionerUnited States Tax Court · 1974
- McShain v. CommissionerUnited States Tax Court · 1979
7 more not listed; retrieve them via the Exa API.
3Cited by42 opinions
- Surloff v. CommissionerUnited States Tax Court · 1983
- Thomas v. CommissionerUnited States Tax Court · 1985
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Brountas v. CommissionerUnited States Tax Court · 1979
- Wendland v. CommissionerUnited States Tax Court · 1982
37 more not listed; retrieve them via the Exa API.