12 Therefore, contributions to and distributions from the partnership, and, as such, reconciliation of a partner's capital account, are not weighed for purposes of the same share requirement. We next consider whether Westco falls within the small partnership exception, thereby excusing respondent from issuing an FPAA with respect to that partnership for the 1985 taxable year. Westco was formed in February 1979 and originally consisted of four partners: Bill Bruce, Donald Ham (Ham), Michael O'Daniels, and petitioner. As of 1985, only petitioner and Ham remained partners, petitioner having purchased the other partners' interests. Because, like Makalu, Westco clearly had 10 or fewer partners during the relevant period, the dispute again centers upon whether the same share requirement is satisfied. The record is unclear as to the percentage of Westco that was owned by petitioner during 1985. Despite petitioner's having prepared Westco's partnership returns and Schedules K-1 for each of the years it was in existence, he was unable to testify as to his ownership interest in Westco or his distributive share of the partnership's profits and losses. Westco's Form 1065 for 1985 reflects a net ordinary loss of $3,252. The loss was allocated to the partners and reflected on the Schedules K-1 as follows: Partner Status Income(Loss) Assigned Percent of Loss Petitioner GP ($3,563) 1.09 Ham GP 311 (.09)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011