Echols v. Commissioner
United States Tax Court
Petitioner held a 75-percent partnership interest in F, whose sole asset was a tract of unimproved real estate purchased with nonrecourse financing. When the purchaser of a 50-percent interest in the tract defaulted and the tract reverted to F in 1976, petitioner and F's remaining partner ceased making payments with respect to the tract.
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Petitioner held a 75-percent partnership interest in F, whose sole asset was a tract of unimproved real estate purchased with nonrecourse financing. When the purchaser of a 50-percent interest in the tract defaulted and the tract reverted to F in 1976, petitioner and F's remaining partner ceased making payments with respect to the tract. The tract's lenders foreclosed in 1977. Held: Because there was no overt manifestation of abandonment in 1976, petitioner is not entitled to a loss pursuant to sec. 165(a) in that year. Petitioner was a 40-percent shareholder in E, which had elected pursuant…
1Opinion of the Court
WHITAKER, Judge:
By statutory notice dated October 27, 1987, respondent determined a deficiency in petitioners’ Federal income tax for the years and in the amounts as follows:
Year Deficiency
1974. $23,645
1975 . 3
1976. 49,450
1977 . 29,631
After concessions, the issues are (1) whether petitioners are entitled to deduct a capital loss pursuant to section 165(a)1 with respect to a partnership, Mann Properties N/W Freeway Ltd., No. 2 (Freeway)2 in 1976, and (2) whether respondent was properly notified that National Exporters, Inc. (Exporters) in which petitioner John Echols was a shareholder, did not…
2Cases cited4 opinions
- Freeland v. CommissionerUnited States Tax Court · 1980
- Hopkins v. CommissionerUnited States Tax Court · 1950
- Andrew v. CommissionerUnited States Tax Court · 1970
- Middleton v. CommissionerUnited States Tax Court · 1981
3Cited by11 opinions
- Citron v. CommissionerUnited States Tax Court · 1991
- John C. Echols and Deanna O. Echols v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1991
- Marinovich v. CommissionerUnited States Tax Court · 1999
- Watts v. Comm'rUnited States Tax Court · 2017
- Citron v. CommissionerUnited States Tax Court · 1991
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