Foothill Ranch Co. Pshp. v. Commissioner
United States Tax Court
P is the tax matters partner of a partnership comprised of four other partners. Two of the partnership's partners are partnerships.
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P is the tax matters partner of a partnership comprised of four other partners. Two of the partnership's partners are partnerships. P filed a motion for reasonable litigation costs pursuant to sec. 7430, I.R.C., and contended that R was not substantially justified in determining that petitioner was not entitled, pursuant to sec. 460, I.R.C., to use the percentage of completion method of accounting. 1. HELD: R's position, relating to whether P was entitled to use PCM, was not substantially justified. 2. HELD, FURTHER, first-tier partners that meet the net worth requirements of sec. 7430,…
1Opinion of the Court
OPINION
Foley, Judge:
This matter is before the Court on petitioner’s motion for an award of litigation costs pursuant to section 7430 and Rule 231. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.
Background
In early 1987, Laguna Niguel Properties, a Delaware corporation, purchased the Whiting Ranch, a parcel of approximately 2,743 acres of undeveloped land. Laguna subsequently exchanged the Whiting Ranch for an interest in Foothill Ranch Co.…
2Cases cited10 opinions
- Pierce v. UnderwoodSupreme Court of the United States · 1988
- Clair S. Huffman v. Commissioner Of Internal RevenueCourt of Appeals for the Ninth Circuit · 1992
- Preben Norgaard Sandra C. Norgaard v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1991
- Powers v. CommissionerUnited States Tax Court · 1993
- Frisch v. CommissionerUnited States Tax Court · 1986
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