Garcia v. Commissioner
United States Tax Court
A partner's share of a partnership's loss is deductible in the year of loss to the extent of his adjusted basis in the partnership, and such deduction is not limited under sec. 165 by the possibility of recovery by the partner in a suit brought against remaining partners for mismanagement and fraud.
1Opinion of the Court
CLAPP, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes in the amounts of $8,186 and $56,344 for the tax years 1984 and 1985, respectively.
After concessions by the parties, the sole issue for decision is whether petitioners are entitled to deduct their distributive share of partnership loss on their 1985 Federal income tax return.
All section references are to the Internal Revenue Code for the years in issue and all Rule references are to the Tax Court Rules of Practice and Procedure.
FINDINGS OF FACT
We incorporate by reference the stipulation of facts and attached…
2Cases cited2 opinions
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
- Kugel v. RyanCourt of Appeals for the Second Circuit · 1961
3Cited by2 opinions
- Garcia v. CommissionerUnited States Tax Court · 1991
- Vincentini v. Comm'rUnited States Tax Court · 2009