IPO II v. Comm'r
United States Tax Court
IPO II, an LLC but treated as a partnership for Federal income tax purposes, is owned by IO, an S corporation, and F, an individual. F owns 100 percent of the outstanding stock in IO, 70 percent of the outstanding stock of IE, an S corporation, and 63 percent of the outstanding stock of IP, a C corporation. F's daughters own the remaining 30 percent of the outstanding stock of IE. IPO II purchased an aircraft, and the loan was guaranteed by F, IE, and IP, but not IO.
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IPO II, an LLC but treated as a partnership for Federal income tax purposes, is owned by IO, an S corporation, and F, an individual. F owns 100 percent of the outstanding stock in IO, 70 percent of the outstanding stock of IE, an S corporation, and 63 percent of the outstanding stock of IP, a C corporation. F's daughters own the remaining 30 percent of the outstanding stock of IE. IPO II purchased an aircraft, and the loan was guaranteed by F, IE, and IP, but not IO. R determined that the liability incurred in the purchase of the aircraft was recourse and fully allocable to F. P argues that…
1Opinion of the Court
OPINION
Haines, Judge:
Respondent issued a notice of final partnership administrative adjustment (fpaa) to Gerald R. For-sythe, as tax matters partner (tmp) for IPO II, determining adjustments to IPO IFs Federal tax returns for 1998 and 1999 (years in issue). For clarification purposes, we shall refer to Gerald R. Forsythe in his capacity as TMP as petitioner; we shall refer to Gerald R. Forsythe in his capacity as owner of IPO II and the other entities described below as Mr. Forsythe.
After concessions,1 the issue for decision is whether any of the recourse liability incurred by IPO II with…
2Cases cited2 opinions
- Callahan v. CommissionerUnited States Tax Court · 1992
- Hga Cinema Trust, Burton W. Kanter, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1991
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