Thornock v. Comm'r
United States Tax Court
Petitioner, Russell D. Thornock, invested in a partnership that invested in a multiple-party equipment leasing transaction involving computer equipment. The partners had no realistic economic liability on the partnership debt obligations because of guarantees made to the partners by other participants in the transaction, because of the nonrecourse nature of the underlying third-party debt on which the transaction was based, and because of other features of the transaction.
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Petitioner, Russell D. Thornock, invested in a partnership that invested in a multiple-party equipment leasing transaction involving computer equipment. The partners had no realistic economic liability on the partnership debt obligations because of guarantees made to the partners by other participants in the transaction, because of the nonrecourse nature of the underlying third-party debt on which the transaction was based, and because of other features of the transaction. Held, the partners were not at risk under sec. 465(b), 1Unless otherwise indicated, all section references are to the…
1Opinion of the Court
OPINION
SWIFT, Judge:
This matter is before the Court on the parties’ cross-motions for partial summary judgment. Rule 121(b). The motions raise essentially legal issues or issues of ultimate fact that the parties ask us to resolve, in the context of these motions, solely on the basis of the relevant undisputed stipulated facts, documents, and applicable law. This is a test case that will affect the outcome of other cases filed by investors in this and other transactions. The parties suggest that the resolution of the issues by summary judgment will significantly reduce and may eliminate…
2Cases cited17 opinions
- Fox v. CommissionerUnited States Tax Court · 1983
- Abramson v. CommissionerUnited States Tax Court · 1986
- Levy v. CommissionerUnited States Tax Court · 1988
- Gefen v. CommissionerUnited States Tax Court · 1986
- Larsen v. CommissionerUnited States Tax Court · 1987
12 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Hambrose Leasing 1984-5 Ltd. Partnership v. CommissionerUnited States Tax Court · 1992
- Moser v. CommissionerCourt of Appeals for the Eighth Circuit · 1990
- Young v. CommissionerCourt of Appeals for the Eleventh Circuit · 1991
- Levien v. CommissionerUnited States Tax Court · 1994
- Charles E. Nicholson, Jr. And Margaret K. Nicholson v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Third Circuit · 1995
26 more not listed; retrieve them via the Exa API.