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