Neubecker v. Commissioner
United States Tax Court
Petitioner Edward F. Neubecker and another partner withdrew from a three-man legal partnership and formed their own partnership. They took with them only certain physical assets having minimal value and some of the clients they had been serving. Petitioner had a balance in his partnership capital account of $ 2,425.57 at the time of his withdrawal. Held, petitioner did not sustain a recognizable loss with respect to his partnership interest as a result of his withdrawal.
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Petitioner Edward F. Neubecker and another partner withdrew from a three-man legal partnership and formed their own partnership. They took with them only certain physical assets having minimal value and some of the clients they had been serving. Petitioner had a balance in his partnership capital account of $ 2,425.57 at the time of his withdrawal. Held, petitioner did not sustain a recognizable loss with respect to his partnership interest as a result of his withdrawal. Sec. 731(a)(2), I.R.C. 1954. Held, further, petitioners are liable for an addition to tax for late filing of their return…
1Opinion of the Court
OPINION
The principal issue remaining for decision is whether, incident to the dissolution of the partnership of Frinzi, Catania, and Neubecker, petitioners sustained a recognizable loss on Edward F. Neubecker’s interest in the partnership. We must also determine whether petitioners are liable for the addition to tax asserted by respondent pursuant to section 6651(a).
With regard to the partnership loss issue, petitioners’ position is predicated on the dissolution of the Frinzi, Catania, and Neubecker partnership. Since Neubecker had, at the time of dissolution, a capital account in the amount…
2Cases cited10 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Pritchett v. CommissionerUnited States Tax Court · 1974
- Fischer v. CommissionerUnited States Tax Court · 1968
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Yagoda v. CommissionerUnited States Tax Court · 1962
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- Burns v. CommissionerUnited States Tax Court · 1987
- Christensen v. CommissionerUnited States Tax Court · 1987
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