Cozzi v. Commissioner
United States Tax Court
In 1975, H, a limited partnership formed to produce motion picture films, entered into an agreement with M to produce a film for M in return for annual payments in 1976 through 1981. B agreed to produce such film for H in return for certain rights to the film from M, and B agreed to make certain annual payments in 1976 through 1979 to H on behalf of M. H entered into a nonrecourse loan agreement with S, whereby H agreed to repay such loan in annual payments in 1977 through…
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In 1975, H, a limited partnership formed to produce motion picture films, entered into an agreement with M to produce a film for M in return for annual payments in 1976 through 1981. B agreed to produce such film for H in return for certain rights to the film from M, and B agreed to make certain annual payments in 1976 through 1979 to H on behalf of M. H entered into a nonrecourse loan agreement with S, whereby H agreed to repay such loan in annual payments in 1977 through 1980. H reported a large loss on its tax return for 1975. The film never made a profit, and none of the annual payments…
1Opinion of the Court
SIMPSON, Judge:
The Commissioner determined a deficiency of $26,991 in the petitioners’ Federal income tax for 1980 and an addition to tax of $1,350 under section 6653(a) of the Internal Revenue Code of 1954.1 The issues for decision tire: (1) Whether the petitioners realized ordinary income in 1980 as a result of the discharge of debt owed by a partnership in which they were limited partners; and (2) whether the petitioners are hable for the addition to tax for negligence under section 6653(a).
FINDINGS OF FACT
To the credit of both parties, many of the facts have been stipulated, and those…
2Cases cited25 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. JanisSupreme Court of the United States · 1976
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Helvering v. TaylorSupreme Court of the United States · 1935
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
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3Cited by48 opinions
- Michael Friedman v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 2000
- Merkel v. CommissionerUnited States Tax Court · 1997
- In re ReedUnited States Bankruptcy Court, E.D. Tennessee · 2013
- Warbus v. CommissionerUnited States Tax Court · 1998
- Coburn v. Comm'rUnited States Tax Court · 2005
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