Prabel v. Commissioner
United States Tax Court
Petitioners invested in a real estate investment partnership that calculated accrued interest deductions relating to a long-term partnership loan on the basis of the "Rule of 78's."
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Petitioners invested in a real estate investment partnership that calculated accrued interest deductions relating to a long-term partnership loan on the basis of the "Rule of 78's." Held: 1. On the undisputed facts of this case, the use of the Rule-of-78's method of calculating accrued interest deductions relating to the long-term partnership loan does not result in a clear reflection of partnership income; 2. Respondent's determination under sec. 446(b), I.R.C. 1954, as amended, is sustained, and the partnership must calculate its accrued interest deductions relating to the long-term loan on…
1Opinion of the Court
OPINION
SWIFT, Judge:
This matter is before the Court on the parties’ cross-motions for summary judgment filed under Rule 121.2 Each party objects to the other party’s motion on the merits. Petitioners further object to respondent’s motion for summary judgment on the ground that there remain unresolved material issues of fact that would have to be decided before respondent’s motion for summary judgment can be granted.
The cross-motions for summary judgment raise the following primary issues; (1) Whether a partnership’s use of the Rule-of-78’s method of accruing interest deductions relating to a…
2Cases cited46 opinions
- Anderson v. Liberty Lobby, Inc.Supreme Court of the United States · 1986
- Celotex Corp. v. Catrett, Administratrix of the Estate of CatrettSupreme Court of the United States · 1986
- Crane v. CommissionerSupreme Court of the United States · 1947
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Commissioner v. HansenSupreme Court of the United States · 1959
41 more not listed; retrieve them via the Exa API.
3Cited by70 opinions
- Capitol Fed. Sav. & Loan Ass'n v. CommissionerUnited States Tax Court · 1991
- Bruce A. And Marianne S. Prabel v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1989
- LaVerne v. CommissionerUnited States Tax Court · 1990
- Ansley-Sheppard-Burgess Co. v. CommissionerUnited States Tax Court · 1995
- Bank One Corp. v. Comm'rUnited States Tax Court · 2003
65 more not listed; retrieve them via the Exa API.