Michael W. and Charlotte S. Phillips - Page 2

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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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