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OPINION
LARO, Judge: Michael W. and Charlotte S. Phillips
petitioned the Court for redetermination of deficiencies
determined by respondent for their 1984 and 1986 taxable years in
the amounts of $25,471 and $69,714, respectively. After
petitioners conceded the deficiency for 1984, the sole issue for
decision is whether petitioners avoided recapture of an
investment credit claimed for property of a partnership subject
to sections 6221 through 62311 (the partnership provisions of the
Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Pub. L.
97-248, sec. 402(a), 96 Stat. 324) as a result of filing an
amended return revoking the credit subsequent to the disposition
of the property. We hold that they did not avoid recapture.
Background
This case was submitted to us fully stipulated. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference. A summary of the facts relevant to our
decision is as follows.
Petitioners resided in Miami, Florida, at the time they
petitioned the Court. During the years 1985 and 1986 they were
partners in Ethanol Partners, Ltd. I (Ethanol). The Schedules
K-1 they received from Ethanol for taxable year 1985 reported
property eligible for regular investment credit in the total
1 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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Last modified: May 25, 2011