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A. SMP ............................................ 99
B. Corona ......................................... 101
C. Mr. and Mrs. Ackerman .......................... 101
XV. Notices of Final Partnership Administrative
Adjustments ........................................ 103
A. SMP ............................................ 103
B. Corona ......................................... 104
OPINION ................................................... 105
I. Partnership Tax Rules ............................. 108
A. In General ..................................... 108
B. Claimed Application of Partnership Tax Rules ... 112
II. Burden of Proof .................................... 113
III. Economic Substance ................................. 115
A. Parties’ Contentions ........................... 115
B. General Legal Principles ....................... 117
C. Summary of Conclusions ......................... 120
D. Subjective Business Purpose .................... 121
1. Banks’ Purposes ............................ 122
a. Banks’ Prior History With
Film Business .......................... 125
b. Banks’ Regulatory Environment .......... 128
c. Why the Ackerman Group? ................ 128
d. Inattention to Film Rights in
Negotiations ........................... 129
e. Selection of EBD Film Rights ........... 130
f. Conclusion ............................. 131
2. Ackerman Group’s Purposes .................. 131
a. Mr. Lerner’s and Mr. Ackerman’s
Backgrounds ............................ 132
b. Focus on Tax Attributes ................ 134
c. Nature of EBD Film Rights .............. 135
d. Purported Interest in CDR Library ...... 145
e. Purported Springboard for New Library .. 147
f. Acquiring NOLs for a Film Business ..... 147
g. Contemporaneous Expression of Purpose .. 149
3. Conclusion ................................. 150
E. Objective Economic Substance ................... 151
1. Economic Significance of Banks’
“Contributions” ............................ 152
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Last modified: May 25, 2011