Garnett v. Comm'r
United States Tax Court
Ps owned interests in L.L.P.s, L.L.C.s, and tenancies in common. On cross-motions for partial summary judgment, the parties request a ruling as to whether Ps' interests are subject to the rule of sec. 469(h)(2), I.R.C., which treats losses from an "interest in a limited partnership as a limited partner" as presumptively passive.
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Ps owned interests in L.L.P.s, L.L.C.s, and tenancies in common. On cross-motions for partial summary judgment, the parties request a ruling as to whether Ps' interests are subject to the rule of sec. 469(h)(2), I.R.C., which treats losses from an "interest in a limited partnership as a limited partner" as presumptively passive. Held: Because Ps did not hold their interests in the L.L.P.s or L.L.C.s as "limited partners", these interests are not subject to the rule of sec. 469(h)(2), I.R.C.Held, further, because Ps' interests in the tenancies in common are not interests in limited…
1Opinion of the Court
OPINION
Thornton, Judge:
This case is before us on the parties’ cross-motions for partial summary judgment. Respondent determined the following deficiencies in and penalties on petitioners’ Federal income taxes:
Year Deficiency sec. Penalty 6662(a)
2000 $170,268 $34,054
2001 110,300 22,060
2002 80,900 16,180
Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the years at issue, and Rule references are to the Tax Court Rules of Practice and Procedure.
The deficiencies arise largely from respondent’s disallowance of losses claimed by petitioners and…
2Cases cited8 opinions
- Sundstrand Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Sundstrand Corp. v. CommissionerUnited States Tax Court · 1992
- Sean P. McNamee v. Department of the Treasury, Internal Revenue Service, Docket No. 05-6151-CvCourt of Appeals for the Second Circuit · 2007
- Frank A. Littriello v. United States of America and United States Department of TreasuryCourt of Appeals for the Sixth Circuit · 2007
- Giles v. VetteSupreme Court of the United States · 1924
3 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
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- Shea Homes, Inc. v. CommissionerUnited States Tax Court · 2014
- Chambers v. Comm'rUnited States Tax Court · 2012
- Garnett v. Comm'rUnited States Tax Court · 2009
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