- 6 -
$1,150,000 (consisting of principal of $681,187 and interest of
$468,813), he transferred to the MPP his 50-percent interest in
two parcels of unencumbered real estate sited in Southampton,
New York.3 Petitioner's former wife owned the remaining
interests. One parcel had a market value of $628,000 on
September 23, 1991. The other parcel had a market value of
$1.45 million on November 9, 1991. The record does not
disclose the market value of either parcel on any other date.
Petitioner has never filed a Form 5330, Return of Excise
Taxes Related to Employee Benefit Plans, with respect to his
transfer of the real estate to the MPP.
Discussion
We decide first whether petitioner's transfer of the real
estate to the MPP was a prohibited transaction under section
4975(a). Respondent determined it was, and, relying primarily
on Commissioner v. Keystone Consol. Indus., Inc., 508 U.S. 152
(1993), argues to the same effect in this proceeding.
Petitioner argues that the transfer was not a prohibited
2(...continued)
money purchase plan trust. The DBP was terminated on Sept. 26,
1990, and its only asset on Oct. 1, 1990, was the right to
receive repayment from petitioner for the amounts it lent him.
3 Petitioner asserts in his brief that the real estate was
transferred to both pension plans. The record does not support
this assertion, and we decline to find it as a fact. See Rule
143(b). The record does not show that petitioner ever
transferred any asset to the DBP in repayment of moneys that he
borrowed from it.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011