Barenholtz v. Commissioner
United States Tax Court
P agreed to sell undivided one-fourth interests in real property to each of three individuals with whom he intended to form a partnership for the operation of the property. Thereafter, the partnership was formed, the interests were sold, and title to the property was transferred to the partnership. Held, the transaction was not within the purview of secs. 721 and 731, I.R.C. 1954, but was a sale by P of 75 percent of his interest in the property.
1Opinion of the Court
Ekman, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes for 1972 and 1973 in the amounts of $125,887.33 and $17,389.20, respectively.
Due to concessions by petitioners, the sole issue for decision is whether amounts received by petitioner Jonas Barenholtz were distributions by a partnership to a partner taxable pursuant to section 731 or proceeds from the sale of 75 percent of petitioners’ interest in two apartment buildings.
FINDINGS OF FACT
Some of the facts have been stipulated by the parties and are found accordingly. The stipulation of facts and attached…
2Cases cited3 opinions
- Foxman v. CommissionerUnited States Tax Court · 1964
- Otey v. CommissionerUnited States Tax Court · 1978
- John H. Otey, Jr. And Bettye G. Otey v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1980
3Cited by7 opinions
- Jacobson v. CommissionerUnited States Tax Court · 1991
- Park Realty Co. v. CommissionerUnited States Tax Court · 1981
- Parker Props. Joint Venture v. CommissionerUnited States Tax Court · 1996
- Barenholtz v. CommissionerUnited States Tax Court · 1981
- Jacobson v. CommissionerUnited States Tax Court · 1991
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