Melvin v. Commissioner
United States Tax Court
Medici, a partnership in which petitioner Marcus W. Melvin was a general partner, invested in a limited partnership. In payment for its limited partnership interest, Medici made a $ 35,000 cash downpayment and agreed to make additional capital contributions in the amount of $ 70,000. The obligation to make the additional capital contributions was reflected by a $ 70,000 recourse promissory note given to the limited partnership.
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Medici, a partnership in which petitioner Marcus W. Melvin was a general partner, invested in a limited partnership. In payment for its limited partnership interest, Medici made a $ 35,000 cash downpayment and agreed to make additional capital contributions in the amount of $ 70,000. The obligation to make the additional capital contributions was reflected by a $ 70,000 recourse promissory note given to the limited partnership. The limited partnership obtained a $ 3,500,000 recourse loan from a bank. To secure the bank loan, the limited partnership pledged to the bank, among other things, the…
1Opinion of the Court
OPINION
SWIFT, Judge:
In timely statutory notices of deficiency, and in an amended answer in docket No. 9325-83, respondent determined deficiencies in petitioners’ Federal income tax liabilities, as follows:
Taxable year
Petitioners ending— Deficiency
Marcus W. and Marilyn E. Melvin— Dec. 31, 1979 $21,340
docket No. 9325-83
Marcus W. Melvin, M.D., P.C.— June 30, 1979 744
docket No. 9451-83
The issues for decision are: (1) The extent to which petitioner Marcus W. Melvin was at risk under section 4651 with respect to a recourse obligation of a limited partnership; (2) whether the individual petitioners…
2Cases cited31 opinions
- Challenge Mfg. Co. v. CommissionerUnited States Tax Court · 1962
- Abramson v. CommissionerUnited States Tax Court · 1986
- American Properties, Inc. v. CommissionerUnited States Tax Court · 1957
- Gefen v. CommissionerUnited States Tax Court · 1986
- Loftin & Woodard, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1978
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3Cited by58 opinions
- Levy v. CommissionerUnited States Tax Court · 1988
- Taube v. CommissionerUnited States Tax Court · 1987
- Ferrell v. CommissionerUnited States Tax Court · 1988
- American Principals Leasing Corp. v. United StatesCourt of Appeals for the Ninth Circuit · 1990
- Marcus W. Melvin and Marilyn E. Melvin v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1990
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