- 19 -
test case, however, also reorganized in a manner similar to
Drake’s reorganization. In 1986, the partnerships involved in
Krause, including Barton, amended their EOR technology license
with Hemisphere and significantly reduced the annual license fee
owed. Krause v. Commissioner, supra at 157. Petitioner’s
attempt to distinguish Drake from the Krause partnerships is
completely unsupported by the evidence.
Petitioner cites a number of cases and appears to argue that
his investment in Drake is, on legal grounds, distinguishable
from the partnerships involved in Krause. Petitioner’s case
authority is miscited and in no way supports petitioner’s
position herein. See also Karlsson v. Commissioner, T.C. Memo.
1997-432; Vanderschraaf v. Commissioner, T.C. Memo. 1997-306.
Drake shares the same controlling characteristics as Barton
and the other partnerships involved in the Krause opinion. No
credible, material differences have been established, and no
persuasive arguments have been presented that distinguish Drake
from the Krause test case partnerships.
In light of our resolution of the above issues (namely, the
lack of profit objective of Drake and the nongenuine nature of
Drake’s debt obligations) on the bases explained, other arguments
made by respondent with regard to the disallowance of Drake’s
claimed losses and credits need not be addressed.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011