Kovtun v. Commissioner
United States Tax Court
The petitioners in all of these consolidated cases were limited partners in S.C., a partnership that was in turn a partner in Lake Murray partnership. The latter partnership reported the payment of prepaid interest to the Sunset Corp. in its information return. The partners in S. C. each took the ratable portion of said interest expense as a deduction in his individual return.
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The petitioners in all of these consolidated cases were limited partners in S.C., a partnership that was in turn a partner in Lake Murray partnership. The latter partnership reported the payment of prepaid interest to the Sunset Corp. in its information return. The partners in S. C. each took the ratable portion of said interest expense as a deduction in his individual return. Held: Respondent was right in disallowing said deductions for there was no existing "indebtedness" ( sec. 163, I.R.C. 1954) owed by the Lake Murray partnership to Sunset to support the interest payment. The required…
1Opinion of the Court
Lael Kovtun, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Kovtun v. Commissioner
Docket Nos. 3390-67, 3400-67 -- 3412-67, 3424-67, 3510-67
United States Tax Court
54 T.C. 331; 1970 U.S. Tax Ct. LEXIS 206;
February 24, 1970, Filed
Decisions will be entered for the respondent.
The petitioners in all of these consolidated cases were limited partners in S.C., a partnership that was in turn a partner in Lake Murray partnership. The latter partnership reported the payment of prepaid interest to the Sunset Corp. in its information return. The partners in S. C. each took the ratable…
2Cases cited3 opinions
- First National Company v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1961
- First Nat'l Co. v. CommissionerUnited States Tax Court · 1959
- Kovtun v. CommissionerUnited States Tax Court · 1970