Colonnade Condominium, Inc. v. Commissioner
United States Tax Court
P, a corporation, held a 50.98-percent majority general partnership interest in GK, a limited partnership. Pursuant to an amendment to the partnership agreement providing for the admission of P's three shareholders, B, F, and M, as additional general partners of GK, P transferred 40.98 percent of its general partnership interest to B, F, and M, who each acquired a 13.66-percent interest in GK.
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P, a corporation, held a 50.98-percent majority general partnership interest in GK, a limited partnership. Pursuant to an amendment to the partnership agreement providing for the admission of P's three shareholders, B, F, and M, as additional general partners of GK, P transferred 40.98 percent of its general partnership interest to B, F, and M, who each acquired a 13.66-percent interest in GK. In exchange for their partnership interests, B, F, and M collectively assumed P's obligation to make annual capital contributions and acquired 40.98 percent of GK's nonrecourse obligations. No…
1Opinion of the Court
WRIGHT, Judge:
Respondent determined the following deficiencies in petitioner’s corporate income tax:1
TYE Jan. 31-Deficiency
1978. $81,991.29
1979. 421,914.35
1980. 4,983.45
In the statutory notice of deficiency, respondent determined that petitioner distributed a partnership interest to its shareholders resulting in a gain taxable to petitioner under section 311(c).2 On January 18, 1985, respondent filed a motion for leave to file amendment to answer wherein he asserted as his primary theory that the transaction in issue was a sale of a partnership interest. Petitioner filed an objection to…
2Cases cited32 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Frank Lyon Co. v. United StatesSupreme Court of the United States · 1978
- Crane v. CommissionerSupreme Court of the United States · 1947
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3Cited by16 opinions
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- German v. CommissionerUnited States Tax Court · 1993
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