Callahan v. Commissioner
United States Tax Court
Ps are limited partners who were required, if called upon by the general partners, to pay three times the amount of cash contributions. The limited partners had the discretion, by written notice, to elect out of the overcall provision. Ps argue, under Pritchett v. Commissioner,827 F.2d 644 (9th Cir. 1987), revg. and remanding 85 T.C. 580 (1985), that the limited partners are at risk for three times their capital contributions.
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Ps are limited partners who were required, if called upon by the general partners, to pay three times the amount of cash contributions. The limited partners had the discretion, by written notice, to elect out of the overcall provision. Ps argue, under Pritchett v. Commissioner,827 F.2d 644 (9th Cir. 1987), revg. and remanding 85 T.C. 580 (1985), that the limited partners are at risk for three times their capital contributions. R argues that the nature of Ps' contractual rights and obligations is distinguishable from that in Pritchett. R contends that Ps' obligation is contingent and illusory.…
1Opinion of the Court
OPINION
Gerber, Judge:
This case is before the Court on the parties' cross-motions for partial summary judgment pursuant to Rule 1212 on the issue of whether petitioners, as limited partners, were at risk within the meaning of section 465 for amounts in excess of their actual cash contributions to the partnership for tax years 1980, 1981, and 1982.
Respondent determined deficiencies in income tax against petitioners resulting from respondent's disallowance of reported losses from option straddle transactions. Respondent also determined that petitioners are liable for increased interest under…
2Cases cited15 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Naftel v. CommissionerUnited States Tax Court · 1985
- Jacklin v. CommissionerUnited States Tax Court · 1982
- Espinoza v. CommissionerUnited States Tax Court · 1982
- Shiosaki v. CommissionerUnited States Tax Court · 1974
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3Cited by8 opinions
- Estate of Robertson v. CommissionerUnited States Tax Court · 1992
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- Estate of Robertson v. CommissionerUnited States Tax Court · 1992
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