Brannen v. Commissioner
United States Tax Court
Petitioner purchased a 4.95-percent limited partnership interest in early 1974. Thereafter, the general partner, on behalf of the limited partnership, purchased a movie for $ 330,000 cash plus a 4-percent nonrecourse note in the amount of $ 1,400,000, secured only by the movie. The partnership reported large losses during its first 4 years due to the claimed depreciation deductions and the fact that the movie was a box office failure.
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Petitioner purchased a 4.95-percent limited partnership interest in early 1974. Thereafter, the general partner, on behalf of the limited partnership, purchased a movie for $ 330,000 cash plus a 4-percent nonrecourse note in the amount of $ 1,400,000, secured only by the movie. The partnership reported large losses during its first 4 years due to the claimed depreciation deductions and the fact that the movie was a box office failure. Held: The partnership did not have any actual investment in the movie to the extent of the $ 1,400,000 nonrecourse note, as the stated purchase price of the…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency in the joint Federal income tax of Frances K. and E. A. Brannen (petitioner) in the amount of $7,001 for the calendar year 1975. The issue for decision is whether petitioner, as a limited partner of Britton Properties, is entitled to deduct his distributive share of the losses from the partnership, which owned a movie as its principal asset.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners E. A. and Frances K. Brannen, husband and wife, who resided in Macon, Ga., at the time of filing their petition in…
2Cases cited42 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Crane v. CommissionerSupreme Court of the United States · 1947
- Golanty v. CommissionerUnited States Tax Court · 1979
- Engdahl v. CommissionerUnited States Tax Court · 1979
37 more not listed; retrieve them via the Exa API.
3Cited by318 opinions
- Dreicer v. CommissionerUnited States Tax Court · 1982
- E.A. Brannen and Frances K. Brannen v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1984
- Siegel v. CommissionerUnited States Tax Court · 1982
- Beck v. CommissionerUnited States Tax Court · 1985
- Rose v. CommissionerUnited States Tax Court · 1987
313 more not listed; retrieve them via the Exa API.