BLAK Invs. v. Comm'r
United States Tax Court
In 2001 two partners of partnership P borrowed Treasury securities and sold them in the open market; i.e., a short sale. They contributed the short sale proceeds and the obligation to cover the short sale to P in exchange for interests in P. The two partners claimed their bases in P were increased by the short sale proceeds but not reduced by the obligation to cover the short sale.
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In 2001 two partners of partnership P borrowed Treasury securities and sold them in the open market; i.e., a short sale. They contributed the short sale proceeds and the obligation to cover the short sale to P in exchange for interests in P. The two partners claimed their bases in P were increased by the short sale proceeds but not reduced by the obligation to cover the short sale. P then redeemed the two partners' interests in P. On their Federal income tax returns the two partners claimed significant losses with respect to the redemption and subsequent sale of assets received in the…
1Opinion of the Court
OPINION
Haines, Judge:
This case is before the Court on respondent’s motion and petitioner’s cross-motion for partial summary judgment filed pursuant to Rule 121.1 The issues are: (1) Whether the effective date of section 6707A precludes application of section 6501(c)(10) to the transaction at issue; (2) whether the transaction at issue is a listed transaction; and (3) whether the period of limitations for assessment of tax resulting from the adjustment of partnership items with respect to the transaction at issue is open for 2001 under section 6501(c)(10).
Background
BLAK Investments (the…
2Cases cited19 opinions
- United States v. MenascheSupreme Court of the United States · 1955
- Harisiades v. ShaughnessySupreme Court of the United States · 1951
- Crane v. CommissionerSupreme Court of the United States · 1947
- E. I. Dupont De Nemours & Co. v. DavisSupreme Court of the United States · 1924
- United States v. Olympic Radio & Television, Inc.Supreme Court of the United States · 1955
14 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- 106 Ltd. v. Comm'rUnited States Tax Court · 2011
- Alpha I, L.P. v. United StatesUnited States Court of Federal Claims · 2010
- Repetto v. Comm'rUnited States Tax Court · 2012
- Isley v. CommissionerUnited States Tax Court · 2013
- Russian Recovery Fund Ltd. v. United StatesUnited States Court of Federal Claims · 2011
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