Orrisch v. Commissioner
United States Tax Court
Under their 1963 partnership agreement, partners A and B were to share equally the gains and losses from the operation of two apartment houses as well as the proceeds of the sale thereof. In a 1966 amendment to the partnership agreement, the partners allocated to A all of the deductions for depreciation allowable on the houses on the understanding that, in the event of a sale thereof, A would pay the tax on the gain attributable to the specially allocated depreciation.
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Under their 1963 partnership agreement, partners A and B were to share equally the gains and losses from the operation of two apartment houses as well as the proceeds of the sale thereof. In a 1966 amendment to the partnership agreement, the partners allocated to A all of the deductions for depreciation allowable on the houses on the understanding that, in the event of a sale thereof, A would pay the tax on the gain attributable to the specially allocated depreciation. Held, the special allocation of depreciation was made for the principal purpose of the avoidance of tax within the meaning of…
1Opinion of the Court
FeathbRston, Judge:
Respondent determined deficiencies in petitioners’ income tax for 1966 and 1967 in the respective amounts of $2,814.19 and $3,018.11. The only issue for decision is whether an amendment to a partnership agreement allocating to petitioners the entire amount of the depreciation deduction allowable on two buildings owned by the partnership was made for the principal purpose of avoidance of tax within the meaning of section 704(b).1
FINDINGS OF FACT
Stanley C. Orrisch ('hereinafter sometimes referred to as Orrisch) and Gerta E. Orrisch were husband and wife until a judgment of…
2Cases cited1 opinion
- Hyman Smith and Lillian Smith v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Morris Smith and Esther SmithCourt of Appeals for the Seventh Circuit · 1964
3Cited by46 opinions
- Elrod v. CommissionerUnited States Tax Court · 1986
- Harris v. CommissionerUnited States Tax Court · 1974
- Eugene Coloman and Louise D. L. Coloman v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
- Davis v. CommissionerUnited States Tax Court · 1980
- Goldfine v. CommissionerUnited States Tax Court · 1983
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