123 T.C. No. 4
UNITED STATES TAX COURT
HARBOR COVE MARINA PARTNERS PARTNERSHIP,
ROBERT A. COLLINS, A PARTNER OTHER THAN THE TAX
MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL
REVENUE, Respondent
Docket No. 13267-02. Filed July 15, 2004.
H is a general partnership, its managing partner
is S, and its other two partners are M and P. H’s
business activity is primarily the operation of a
marina in San Diego, California. On account of
dissension that consistently occurred between S and P
as to H’s operation of the marina, S, in its capacity
as H’s managing partner, dissolved H, distributed the
marina to S or to an S affiliate, distributed to P a
check in the amount of the value of P’s interest in H
as ascertained using a $16.5 million appraised value
for the marina, and reported to R that H had
terminated. S’s actions, all of which occurred in
1998, violated H’s partnership agreement which required
that H’s managing partner sell the marina publicly to
the highest bidder in the event of a dissolution and
that the proceeds of the sale be distributed to the
partners in accordance with the interests stated in the
agreement. P disavowed that H had terminated, sued S
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