Gauntt v. Commissioner
United States Tax Court
Ps were members of 5 limited partnerships which were among 10 limited partnerships formed on Oct. 28, 1976. On that date, the partnerships, acting in concert, executed an agreement to execute coal subleases with BPC, subject to BPC's producing proof of title. BPC was closely affiliated with J, a general partner of the partnerships.
Read the full summary
Ps were members of 5 limited partnerships which were among 10 limited partnerships formed on Oct. 28, 1976. On that date, the partnerships, acting in concert, executed an agreement to execute coal subleases with BPC, subject to BPC's producing proof of title. BPC was closely affiliated with J, a general partner of the partnerships. Ps joined the partnerships between Nov. 20 and Dec. 31, 1976. On Dec. 31, 1976, the 5 partnerships executed subleases with BPC pursuant to which they were obligated to pay advanced royalties, which were substantially less than those required in the sublease…
1Opinion of the Court
OPINION
Simpson, Judge:
This matter is before the Court on the Commissioner’s motion for partial summary judgment pursuant to Rule 121, Tax Court Rules of Practice and Procedure.2 The issues raised by the motion are: (1) Whether the Commissioner properly applied the amended section 1.612-3, Income Tax Regs., to disallow certain partnership loss deductions for advanced royalties claimed by the petitioners for 1976; and (2) whether the varying interest rule of section 706(c)(2)(B), I. R. C. 1954,3 prohibits the allocation of such losses to the petitioners.
The Commissioner determined the following…
2Cases cited14 opinions
- First Nat. Bank of Ariz. v. Cities Service Co.Supreme Court of the United States · 1968
- Jacklin v. CommissionerUnited States Tax Court · 1982
- Wing v. CommissionerUnited States Tax Court · 1983
- Alterman Foods, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1975
- George L. Stansifer, Dba Lakewood Sports Cars v. Chrysler Motors Corporation, and J. O. Fisher Corporation (Jim Fisher Motors)Court of Appeals for the Ninth Circuit · 1973
9 more not listed; retrieve them via the Exa API.
3Cited by29 opinions
- Ben Abatti and Margaret Abatti v. Commissioner of the Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1988
- Capek v. CommissionerUnited States Tax Court · 1986
- Abatti v. CommissionerUnited States Tax Court · 1986
- Seaman v. CommissionerUnited States Tax Court · 1985
- Vastola v. CommissionerUnited States Tax Court · 1985
24 more not listed; retrieve them via the Exa API.