Pratt v. Commissioner
United States Tax Court
1. Amounts of management fees based on a percent of rentals received by partnerships which were accrued by partnerships and deducted but not paid to partners who reported income on a cash basis are not "guaranteed payments" under sec. 707(c), I.R.C. 1954. 2. Partnership is not entitled under sec. 707(a) to deduct accrued management fees as being from a transaction by a partner in his capacity other than as a partner, since under the facts here the management fees arose from…
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1. Amounts of management fees based on a percent of rentals received by partnerships which were accrued by partnerships and deducted but not paid to partners who reported income on a cash basis are not "guaranteed payments" under sec. 707(c), I.R.C. 1954. 2. Partnership is not entitled under sec. 707(a) to deduct accrued management fees as being from a transaction by a partner in his capacity other than as a partner, since under the facts here the management fees arose from petitioners' relation as partners to the partnership and, therefore, each petitioner's distributive share of partnership…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined deficiencies in the Federal income taxes of petitioners for the years 1967 through 1969 in the following amounts:
Petitioners 1967 1968 1969
Edward T. and Billie R. Pratt ___ $133.22 $3,348.92 $3,553.27
William D. and Anita Pratt_ 744.69 1,830.52 2,768.10
Jack E. and Crystal A. Pratt_ 0 8,517.32 7,020.94
The issue for decision is whether management fees for services performed by petitioners for, and interest earned on, loans made by petitioners to two limited partnerships, of which petitioners were general partners, are deductible by the partnerships, and,…
2Cases cited8 opinions
- Cagle v. CommissionerUnited States Tax Court · 1974
- Liflans Corporation v. The United StatesUnited States Court of Claims · 1968
- Sverdrup v. CommissionerUnited States Tax Court · 1950
- Miller v. CommissionerUnited States Tax Court · 1969
- Falconer v. CommissionerUnited States Tax Court · 1963
3 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Davis v. CommissionerUnited States Tax Court · 1980
- Edward T. And Billie R. Pratt, William D. And Anita Pratt, Jack E. And Crystal A. Pratt v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1977
- Casel v. CommissionerUnited States Tax Court · 1982
- Daniel S. Kampel and Clarisse Kampel v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1980
- Egolf v. CommissionerUnited States Tax Court · 1986
15 more not listed; retrieve them via the Exa API.