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Coastal attributable to taxing petitioner on a distributive share
of Pecaris gain on the sale of the Mall; and the tax treatment of
the value of the Mall in excess of $4.8 million, 90 percent of
which was arguably appropriated by petitioner without the
knowledge of his partners.
Petitioner received from Pecaris a cash distribution of
$95,783 and total credits of $700,000, only $600,000 of which was
attributable to his interest as a partner of Pecaris, and
equatable with the cash distribution of $695,783 received by
petitioner's equal partner in Pecaris, Mr. Spillas. The other
$100,000 of credit was attributable to the brokerage commission
in that amount that does not appear to have been paid, but which
was used by Pecaris as an offset in computing its gain realized
on the sale of the Mall. Although the record does not disclose
whether it was HGM or petitioner who was actually entitled to
receive the commission or the nature or extent of the ownership
or employment relationship between petitioner and HGM, it's
clear that petitioner received the benefit of the credit in the
computation for partnership accounting purposes of his capital
contribution to Coastal. Inasmuch as the right to receive the
commission arose not from petitioner's status as a partner of
Pecaris, see, e.g., Kobernat v. Commissioner, T.C. Memo. 1972-
132, but as a real estate broker affiliated with HGM, see
Williams v. Commissioner, 64 T.C. 1085, 1088-1089 (1975), section
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