Siller Bros. v. Commissioner
United States Tax Court
P and L-P were 50-percent partners in Tri-Eagle Co. P purchased L-P's interest, resulting in a liquidation of the partnership. P continued to carry on the partnership's business without interruption, including the business use of Tri-Eagle's investment credit property. P treated the transaction as a purchase of 50-percent of Tri-Eagle's assets when, in fact, it was a purchase of L-P's 50-percent interest in Tri-Eagle's assets.
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P and L-P were 50-percent partners in Tri-Eagle Co. P purchased L-P's interest, resulting in a liquidation of the partnership. P continued to carry on the partnership's business without interruption, including the business use of Tri-Eagle's investment credit property. P treated the transaction as a purchase of 50-percent of Tri-Eagle's assets when, in fact, it was a purchase of L-P's 50-percent interest in Tri-Eagle's assets. P thus incorrectly transferred Tri-Eagle's basis in its assets to its books and continued to depreciate them using the same lives and methods used by Tri-Eagle. In…
1Opinion of the Court
OPINION
WILLIAMS, Judge:*
The Commissioner determined deficiencies in petitioner’s Federal income tax for its taxable years ended April 30, 1978, April 30, 1979, and April 30, 1980. The parties have settled most of the issues raised in the deficiency notice. The remaining issue for decision is whether a partner is required to recapture investment tax credit pursuant to section 47(a)(1)1 when it acquires partnership property in a liquidating distribution and continues to use the property in the same business. The parties have agreed that if petitioner is required to recapture investment tax…
2Cases cited7 opinions
- United States v. CorrellSupreme Court of the United States · 1967
- Norman and Arlene Rodman, Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Appellee-Cross-AppellantCourt of Appeals for the Second Circuit · 1976
- Moradian v. CommissionerUnited States Tax Court · 1969
- Southern v. CommissionerUnited States Tax Court · 1986
- Charles L. Long and Ruth S. Long v. United StatesCourt of Appeals for the Sixth Circuit · 1981
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Siller Bros. v. CommissionerUnited States Tax Court · 1987