Moore v. Commissioner
United States Tax Court
P was a limited partner in X limited partnership. A and B were general partners in Y general partnership. With 3 days remaining in Y's 1972 taxable year, X purchased slightly less than a 50-percent partnership interest in Y ratably from A and B. Simultaneously, the Y partnership agreement was amended to allocate retroactively to X 100 percent of the losses incurred by Y during such taxable year.
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P was a limited partner in X limited partnership. A and B were general partners in Y general partnership. With 3 days remaining in Y's 1972 taxable year, X purchased slightly less than a 50-percent partnership interest in Y ratably from A and B. Simultaneously, the Y partnership agreement was amended to allocate retroactively to X 100 percent of the losses incurred by Y during such taxable year. In its partnership return, X reported a loss which included all of Y's loss, and P deducted his distributive share of such loss on his income tax return. Held, the allocation of Y's loss to X to the…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency of $2,757.23 in the petitioners’ Federal income tax for 1972. Both parties have conceded certain adjustments. The issues remaining for decision are: (1) Whether, for Federal tax purposes, partners can agree to allocate retroactively partnership losses to a partner who was not a member of the partnership at the time such losses accrued; and (2) to what extent was a partnership loss incurred after the admission of a new partner.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found. • >
The petitioners, John M.…
2Cases cited15 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
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3Cited by43 opinions
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- Roccaforte v. CommissionerUnited States Tax Court · 1981
- Cottle v. CommissionerUnited States Tax Court · 1987
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