Superior Trading, LLC v. Comm'r
United States Tax Court
R denied losses claimed by Ps, tax matters or other participating partners on behalf of purported partnerships, relating to distressed consumer receivables acquired from a Brazilian retailer in bankruptcy reorganization. R adjusted partnership items, attributing a zero basis to the receivables in lieu of the claimed carryover basis in the full face amount of the receivables.
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R denied losses claimed by Ps, tax matters or other participating partners on behalf of purported partnerships, relating to distressed consumer receivables acquired from a Brazilian retailer in bankruptcy reorganization. R adjusted partnership items, attributing a zero basis to the receivables in lieu of the claimed carryover basis in the full face amount of the receivables. R determined accuracy-related penalties under sec. 6662(h), I.R.C., for gross valuation misstatements of inside bases. Held: Ps failed to establish that the distressed consumer receivables had any tax basis upon transfer…
1Opinion of the Court
Wherry, Judge:
Each of these consolidated cases constitutes a partnership-level proceeding under the unified audit and litigation provisions of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec. 402(a), 96 Stat. 648, commonly referred to as tefra. The issues for decision are: (1) Whether a bona fide partnership was formed for Federal tax purposes between a Brazilian retailer and a British Virgin Islands company for purposes of servicing and collecting distressed consumer receivables owed to the retailer; (2) whether this Brazilian retailer made a valid contribution of…
2Cases cited33 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Estate of BoschSupreme Court of the United States · 1967
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
28 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Superior Trading, LLC v. CommissionerCourt of Appeals for the Seventh Circuit · 2013
- Rogers v. Comm'rUnited States Tax Court · 2014
- John E. Rogers & Frances L. Rogers v. CommissionerUnited States Tax Court · 2018
- Russian Recovery Fund Limited v. United StatesUnited States Court of Federal Claims · 2015
- Sugarloaf Fund LLC v. Comm'rUnited States Tax Court · 2013
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