Legal Opinion

Falkoff v. Commissioner

United States Tax Court

Decided May 15, 1974No. Docket No. 2087-71PublishedCited by 18 opinions

During 1966 petitioner was a partner in Empire, which in turn held a 22 1/2-percent limited partnership interest in Venture. From March of 1962 until June of 1966, the only other partner in Venture was ODE, a subsidiary of Interstate. On or about June 2, 1966, a group of investors acquired a portion of ODE's partnership interest in Venture and loaned Venture $ 3,500,000. None of the partners in Venture incurred any personal liability as a result of the loans.

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During 1966 petitioner was a partner in Empire, which in turn held a 22 1/2-percent limited partnership interest in Venture. From March of 1962 until June of 1966, the only other partner in Venture was ODE, a subsidiary of Interstate. On or about June 2, 1966, a group of investors acquired a portion of ODE's partnership interest in Venture and loaned Venture $ 3,500,000. None of the partners in Venture incurred any personal liability as a result of the loans. Venture distributed $ 274,275 to Empire. At about the same time, Empire received a loan of $ 500,000 from Jupiter, the parent…

1Opinion of the Court

FeatherstoN, Judge:

Respondent determined a deficiency of $104,-937.46 in petitioners’ income tax for 1966. The issues remaining for decision are as follows:(1) Whether petitioners’ pro rata share of the proceeds of a purported loan of $500,000 by the Jupiter Corp. to Empire Properties, a partnership of which petitioner Milton Falkoff was a member, was taxable income;(2) Whether petitioners’ pro rata share of a $274,275 distribution to Empire Properties from Venture, a partnership in which Empire Properties was a limited partner, was taxable as ordinary income; and(3) In the event the $274,275…

2Cases cited6 opinions

  1. Mayerson v. CommissionerUnited States Tax Court · 1966
  2. Stilwell v. CommissionerUnited States Tax Court · 1966
  3. Arlen v. Comm'rUnited States Tax Court · 1967
  4. The Estate of Robert B. Dupree, Robert P. Dupree, Independent v. United StatesCourt of Appeals for the Fifth Circuit · 1968
  5. Jamison v. United StatesDistrict Court, N.D. California · 1968

1 more not listed; retrieve them via the Exa API.

3Cited by18 opinions

  1. Minnis v. CommissionerUnited States Tax Court · 1979
  2. Covil Insulation Co. v. CommissionerUnited States Tax Court · 1975
  3. Frierdich v. CommissionerUnited States Tax Court · 1989
  4. Jupiter Corp. v. United StatesUnited States Court of Claims · 1983
  5. Burton v. CommissionerUnited States Tax Court · 1975

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