Peters v. Commissioner
United States Tax Court
During 1976 and 1977, petitioners' partnership was engaged in farming as defined in sec. 464(e), I.R.C. 1954. The partnership borrowed funds from a corporation related to each petitioner under Code sec. 267(b). Held, the borrowed funds were not amounts at risk and the losses attributable to the partnership's farming activity are not available as deductions for the years in issue. Sec. 465(b)(3), I.R.C. 1954.
1Opinion of the Court
Nims, Judge:
Respondent determined deficiencies in,petitioners’ income tax as follows:
Year Deficiency
Docket No. 17558-79 1976 $20,146 1977 7,059
Docket No. 17559-79 1976 12,381 1977 7,419
Docket No. 17560-79 1977 7,448
The issue for decision is whether, under section 465,2 the borrowing of funds from a related "person” within the meaning of section 267(b) limits petitioners’ otherwise deductible partnership losses.
FINDINGS OF FACT
At the time the petitions in this case were filed, all of the, petitioners resided in Colorado.
Ordway Feed, Inc. (Feed), is a Colorado corporation organized on January…
2Cases cited3 opinions
- Continental Nat. Bank v. DolanColorado Court of Appeals · 1977
- Bell Realty Trust v. CommissionerUnited States Tax Court · 1976
- Oak Hill Finance Co. v. CommissionerUnited States Tax Court · 1963
3Cited by17 opinions
- Jackson v. CommissionerUnited States Tax Court · 1986
- Melvin v. CommissionerUnited States Tax Court · 1987
- Follender v. CommissionerUnited States Tax Court · 1987
- Brand v. CommissionerUnited States Tax Court · 1983
- Bennion v. CommissionerUnited States Tax Court · 1987
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