Park Realty Co. v. Commissioner
United States Tax Court
Petitioner commenced development of a shopping center on land which it owned, incurred development costs exclusive of land costs in the amount of $ 351,575.11, and negotiated tentative agreements whereby certain retailers would occupy the center as anchor stores. Unable to obtain adequate financing, petitioner formed a partnership with an affiliate of a large developer, and petitioner transferred its interest in the property to the partnership.
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Petitioner commenced development of a shopping center on land which it owned, incurred development costs exclusive of land costs in the amount of $ 351,575.11, and negotiated tentative agreements whereby certain retailers would occupy the center as anchor stores. Unable to obtain adequate financing, petitioner formed a partnership with an affiliate of a large developer, and petitioner transferred its interest in the property to the partnership. Pursuant to the partnership agreement, upon consummation of binding agreements with the anchor stores, petitioner received payments in the amount of $…
1Opinion of the Court
Ekman, Judge:
Respondent determined a deficiency in petitioner’s Federal income taxes for 1972 and 1975 in the amounts of $34,643 and $21,295, respectively. Due to concessions by the parties, the sole issue remaining for decision is whether payments received by petitioner from a partnership of which it was a partner constitute proceeds from the sale of property to the partnership taxable pursuant to section 707(a)1 or a distribution by the partnership to a partner taxable, if at all, under section 731.
FINDINGS OF FACT
This case was submitted fully stipulated under Rule 122, Tax Court Rules of…
2Cases cited3 opinions
- Otey v. CommissionerUnited States Tax Court · 1978
- John H. Otey, Jr. And Bettye G. Otey v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1980
- Barenholtz v. CommissionerUnited States Tax Court · 1981
3Cited by4 opinions
- Jupiter Corp. v. United StatesUnited States Court of Claims · 1983
- Jacobson v. CommissionerUnited States Tax Court · 1991
- Jacobson v. CommissionerUnited States Tax Court · 1991
- Park Realty Co. v. CommissionerUnited States Tax Court · 1981