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partners' capital accounts for 1989.1 After concessions, the
issue for decision is whether the income realized from the
discharge of nonrecourse loans should be treated as gain derived
from dealings in property includable in gross income under
section 61(a)(3) or as discharge of indebtedness income within
the meaning of section 61(a)(12).
This case was submitted without a trial pursuant to Rule
122.2 The stipulation of facts and the attached exhibits are
incorporated by this reference, and the facts contained therein
are found accordingly.
Background
Briarpark is a Texas limited partnership whose principal
place of business, at the time of filing the petition, was
Houston, Texas. Briarpark is subject to TEFRA provisions
contained in sections 6221 through 6233. During 1989, the
partners in Briarpark were:
Name Type of Partnership Interest
Janet Stein General partner
Robert Husmann General partner
William C. Motley General partner
Billy G. Motley General partner
Jon D. Motley General partner
James H. Motley General partner
1The FPAA was mailed to the tax matters partner and each of
the partners entitled to notice.
2Unless otherwise indicated, all section references are to
the Internal Revenue Code as in effect for the year at issue, and
Rule references are to the Tax Court Rules of Practice and
Procedure.
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