- 9 -
identical to the installment payments due Charterhouse from
Hambrose under the note, described above.
The partnership purchased the additional equipment from
Hambrose for $14,421,478, subject to all other liens and leases,
including those of the original third-party lenders, Comdisco,
and Hambrose. The $14,421,478 purchase price was paid by
$1,442,148.00 in cash, and by an installment note secured by the
additional equipment, and payable as follows:
Year Amount4
1984 $ 519,173
1985 2,076,693
1986 2,076,693
1987 3,051,822
1988 2,320,522
1989 2,575,780
1990 2,859,116
1991 3,173,618
1992 2,571,326
This note was nonrecourse as to the partnership,5 and subject to
deferral if the partnership did not receive amounts due it from
Charterhouse, for up to 96 months, until September 30, 1992. As
with the initial equipment, the partnership anticipated that a
substantial portion of a limited partner's return would depend on
4 The first four amounts differ slightly from those rental
payments pursuant to the wrap lease and installments on the note
payable by Hambrose to Charterhouse. We do not consider these
differences significant. See Wag-A-Bag Inc. v. Commissioner,
T.C. Memo. 1992-581.
5 Hambrose Leasing v. Commissioner, 99 T.C. 298, 301, 312
(1992); see infra note 9.
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