Hillman v. Comm'r
United States Tax Court
P's S corporation (S) performed management services for real estate partnerships in which P had direct and indirect interests. P actively participated in S by performing management services that S had contracted to perform for the partnerships. P was not an active participant in any of the partnerships.
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P's S corporation (S) performed management services for real estate partnerships in which P had direct and indirect interests. P actively participated in S by performing management services that S had contracted to perform for the partnerships. P was not an active participant in any of the partnerships. On the Schedule K-1 issued to P from S, P's portion of the management income was reduced by the portion of the corresponding management fee expense paid by the partnerships to S in an amount proportionate to P's ownership percentage in each partnership. The reduction from the management income…
1Opinion of the Court
SUPPLEMENTAL OPINION
Gerber, Judge:
In an earlier Opinion filed by the Court in this case we decided that petitioners were entitled to treat management fees as offsetting self-charged items for purposes of section 469.1 The Court of Appeals for the Fourth Circuit disagreed and reversed our holding. Hillman v. Commissioner, 263 F.3d 338 (4th Cir. 2001), revg. 114 T.C. 103 (2000).2
Due to the reversal, we must now consider petitioners’ alternative argument concerning whether they correctly reported the management fee items. In general we consider whether petitioners’ reporting position should be…
2Cases cited4 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Commissioner v. GroetzingerSupreme Court of the United States · 1987
- David H. Hillman Suzanne Hillman v. Internal Revenue ServiceCourt of Appeals for the Fourth Circuit · 2001
- Hillman v. CommissionerUnited States Tax Court · 2000
3Cited by5 opinions
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- Charles Brumbaugh & C. E. Holifield v. CommissionerUnited States Tax Court · 2018
- David H. and Suzanne Hillman v. CommissionerUnited States Tax Court · 2002
- Hillman v. Comm'rUnited States Tax Court · 2002