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MEMORANDUM FINDINGS OF FACT AND OPINION
GERBER, Judge: Respondent issued a notice of final
partnership administrative adjustments to each of the three
partnerships involved in these consolidated cases, determining
adjustments for the 1984 and 1985 taxable years. After
concessions by the parties, the sole issue for consideration is
whether any of the partnerships purchased condominiums in
December 1983 for purposes of determining whether deductions may
be taken, under section 483,2 for unstated interest.3
FINDINGS OF FACT4
David G. Derrick (Derrick), along with 11 other persons,
orally agreed, during December of 1983, to form three Utah
general partnerships: Spyglass Partners, Pebble Beach Partners,
and Cypress Point Partners. The principal place of business of
each partnership at all relevant times was in Utah. Written or
formal partnership agreements were not drawn or executed until
2Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the years in issue. Rule
references are to this Court's Rules of Practice and Procedure.
3The parties have agreed that the resolution of the factual
issue concerning when the purchase of the condominiums occurred,
which will be determinative of whether sec. 483 applies, will
also be determinative of some of the "settled" issues.
4The parties' stipulation of facts and exhibits are
incorporated by this reference. Respondent agreed that the
condominium purchases were actually consummated and were not sham
transactions. Respondent did not agree, however, that the
condominiums were purchased prior to July 1984.
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